Core Viewpoint - Origin Bancorp, Inc. (OBK) is positioned for growth due to strong loan and deposit balances, strategic initiatives, and a favorable high interest rate environment. Analysts are optimistic about the stock's earnings growth potential, with Zacks Consensus Estimates for 2024 and 2025 earnings increasing by 9.1% and 8% respectively. OBK holds a Zacks Rank 1 (Strong Buy) [1][4]. Earnings Growth - Origin Bancorp has experienced earnings growth of 14.62% over the past three to five years, significantly outperforming the industry average of 7.30%. This growth is attributed to solid top-line growth and effective expense management [3]. - The company has a strong earnings surprise history, surpassing the Zacks Consensus Estimate in three of the last four quarters, with an average beat of 8.04%. Future earnings estimates indicate a slight increase in 2024 and a 7.6% rise in 2025 [4][6]. Revenue Strength - Origin Bancorp's revenues have shown a compound annual growth rate (CAGR) of 12.9% over the last four years (2019-2023), although there was a decline in the first quarter of 2024 due to lower net interest income (NII). The acquisition of BT Holdings, Inc. in 2022 has enhanced revenue growth, supported by organic growth measures and higher interest rates [5][6]. Strong Balance Sheet - As of March 31, 2024, OBK's total cash and cash equivalents were $291.5 million, with total debt at $147.4 million. Total loans and total deposits have shown a CAGR of 16.6% and 18.2% respectively over the last four years. This upward trend continued in the first quarter of 2024 [7][8]. - The strategic decision to sell mortgage servicing rights (MSR) assets has further strengthened the balance sheet by reducing volatility and regulatory risks. The company's debt/equity ratio stands at 0.16, lower than the industry average of 0.26, indicating a conservative approach to debt financing [8]. Stock Valuation - Origin Bancorp's stock appears undervalued, with price-to-book and price-to-sales ratios of 0.90 and 1.61 respectively, both below the industry averages of 0.95 and 1.76 [9].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR (Address, including zip code, and telephone number, including area code, of registrant's principal executive offices) Securities registered pursuant to Section 12(b) of the Act: | Title of Each Class | Trading Symbol(s) | Name of Exchange on which registered | | --- | --- | --- | ...

Financial Data and Key Metrics Changes - The company reported diluted earnings per share of $0.73 for Q1, with pretax pre-provision earnings of $31.9 million [54][66] - Tangible book value increased by 2% to $29.24, and the TCE ratio remained flat at 9.3% [54][11] - The allowance for credit losses increased by $1.5 million to $98.4 million, resulting in a slight percentage change from the prior quarter [7] Business Line Data and Key Metrics Changes - Gross loans held for investment grew by 3.1% during the quarter, with a 2.3% increase excluding mortgage warehouse [87] - Noninterest income for Q1 was reported at $17.3 million, up from $14.6 million in Q4, driven by seasonal strength in the insurance business and increased mortgage production [68] - Noninterest expense decreased to $58.7 million in Q1 from $60.9 million in Q4 [69] Market Data and Key Metrics Changes - Total deposits grew by 3.1% during the quarter, with a 1.3% increase excluding brokered deposits [9] - The net interest margin remained flat at 3.19%, with expectations for slight improvement moving forward [10] - The company anticipates continued pressure on the noninterest-bearing deposit mix but expects it to remain above 20% [9] Company Strategy and Development Direction - The company is focused on improving profitability and driving revenue through strategic investments in new markets, such as South Alabama and the Florida Panhandle [79] - A strategic decision was made to realign the treasury management model to better serve geographic strategies and enhance efficiency [4] - The company aims to maintain a disciplined approach to loan pricing while focusing on core deposit growth [39] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about deposit growth and the ability to achieve loan growth in the mid-single digits for the year [47][88] - The company is preparing to cross the $10 billion asset threshold and is focused on managing expenses while seeking growth opportunities [2][96] - Management highlighted the importance of maintaining a strong culture and building long-term relationships with clients as a competitive differentiator [62] Other Important Information - The company successfully sold its MSR asset, which is expected to reduce volatility in earnings and regulatory risk [55] - Nonperforming loans increased by $10.3 million, but levels remain within historically acceptable ranges [64] - The company has implemented robotic process automation, saving approximately 3,100 hours of manual work in Q1 2024 [5] Q&A Session Summary Question: What are the expectations on deposit costs moving forward? - Management indicated that while interest-bearing deposit costs were up 13 basis points, they expect some easing from recent levels and are focused on maintaining net interest margin [14][15] Question: Can you provide insights on noninterest-bearing deposits? - Management noted a shift in the noninterest-bearing deposit mix but expressed optimism about stabilizing trends and maintaining levels above 20% [18][104] Question: What are the expectations for loan and deposit growth? - Management reiterated expectations for loan growth in the mid-single digits, with deposit growth expected to match this [47][88] Question: How is the company managing expenses? - Management highlighted effective expense management in Q1 but cautioned against over-optimism, maintaining guidance at the appropriate level [29] Question: What are the thoughts on capital deployment and M&A? - Management expressed confidence in capital flexibility for future opportunities, including potential M&A, while focusing on organic growth in new markets [94][96]

For the quarter ended March 2024, Origin Bancorp (OBK) reported revenue of $90.58 million, down 3.2% over the same period last year. EPS came in at $0.73, compared to $0.79 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $88.8 million, representing a surprise of +2.00%. The company delivered an EPS surprise of +19.67%, with the consensus EPS estimate being $0.61.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Stre ...

Exhibit 99.1 For Immediate Release ORIGIN BANCORP, INC. REPORTS EARNINGS FOR FIRST QUARTER 2024 RUSTON, Louisiana (April 24, 2024) - Origin Bancorp, Inc. (NYSE: OBK) ("Origin," "we," "our" or the "Company"), the holding company for Origin Bank (the "Bank"), today announced net income of $22.6 million, or $0.73 diluted earnings per share for the quarter ended March 31, 2024, compared to net income of $13.4 million, or $0.43 diluted earnings per share, for the quarter ended December 31, 2023. Adjusted pre-tax ...

[Cautionary Note Regarding Forward-Looking Statements](index=4&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) This section cautions that forward-looking statements in the 10-K are subject to inherent uncertainties and risks, with actual results potentially differing due to economic, industry, and regulatory factors - Forward-looking statements are based on current expectations, estimates, and projections, but are not guarantees of future performance and are subject to difficult-to-predict risks, assumptions, and uncertainties[12](index=12&type=chunk) - Key factors that could cause actual results to differ materially include economic uncertainty, adverse developments in the banking industry (e.g., bank failures), ability to comply with capital and liquidity requirements, fluctuating interest rates, and the impact of inflation[13](index=13&type=chunk) - Other significant risks include credit risk from loan portfolios (especially commercial real estate), natural disasters, system failures, cybersecurity threats, risks associated with mergers and acquisitions, and changes in laws, regulations, or accounting rules[13](index=13&type=chunk)[15](index=15&type=chunk) PART I [Item 1. Business](index=6&type=section&id=Item%201.%20Business) Origin Bancorp, Inc. is a financial holding company providing diverse financial services across Texas, Louisiana, and Mississippi, emphasizing organic growth and sound asset quality under extensive regulation - Origin Bancorp, Inc. is a financial holding company, and its wholly-owned subsidiary, Origin Bank, was founded in 1912, providing personalized, relationship banking services[19](index=19&type=chunk)[20](index=20&type=chunk) Key Financial Metrics (as of December 31, 2023) | Metric | Amount (in billions) | | :---------------------- | :------------------- | | Total Assets | $9.72 | | Total Loans Held for Investment (LHFI) | $7.66 | | Total Deposits | $8.25 | | Total Stockholders' Equity | $1.06 | - The company's common stock transferred its listing from Nasdaq to the New York Stock Exchange (NYSE) on **May 22, 2023**, trading under the new stock symbol **'OBK'**[21](index=21&type=chunk) - Competitive strengths include a talented team, diverse footprint in stable and growth-oriented markets, differentiated service, a core deposit franchise, and leveraging infrastructure and technology[22](index=22&type=chunk) - The company's strategic plan has led to significant growth, integrating four bank acquisitions since 2005, expanding product offerings, and entering new markets, including South Alabama and the Florida Panhandle in January 2024[25](index=25&type=chunk) Loan Portfolio Composition (as of December 31, 2023) | Loan Type | Amount (in thousands) | Percentage of Total LHFI | | :-------------------------------- | :-------------------- | :----------------------- | | Real estate: | | | | Commercial real estate | $2,442,734 | 31.9 % | | Construction/land/land development | $1,070,225 | 14.0 % | | Residential real estate | $1,734,935 | 22.6 % | | **Total real estate** | **$5,247,894** | **68.5 %** | | Commercial and industrial | $2,059,460 | 26.9 % | | Mortgage warehouse lines of credit | $329,966 | 4.3 % | | Consumer | $23,624 | 0.3 % | | **Total LHFI** | **$7,660,944** | **100.0 %** | Interest Income by Loan Type (Years Ended December 31) | Loan Type | 2023 (in millions) | 2022 (in millions) | 2021 (in millions) | | :-------------------------------- | :----------------- | :----------------- | :----------------- | | Commercial real estate | $135.1 | $88.2 | $61.8 | | Construction/land/land development | $69.6 | $36.4 | $21.9 | | Consumer and residential real estate | $83.9 | $51.1 | $38.0 | | Commercial and industrial | $155.8 | $90.5 | $67.1 | | Mortgage warehouse loans | $21.5 | $18.7 | $27.5 | - At December 31, 2023, total deposits were **$8.25 billion**, with **89.0%** classified as core deposits, and the cost of total deposits was **2.38%** for the year[32](index=32&type=chunk)[51](index=51&type=chunk) Mortgage Banking Revenue (Years Ended December 31) | Metric | 2023 (in millions) | 2022 (in millions) | 2021 (in millions) | | :----------------------- | :----------------- | :----------------- | :----------------- | | Mortgage banking revenue | $3.4 | $6.7 | $12.9 | Insurance Commission and Fee Income (Years Ended December 31) | Metric | 2023 (in millions) | 2022 (in millions) | 2021 (in millions) | | :-------------------------------- | :----------------- | :----------------- | :----------------- | | Insurance commission and fee income | $25.1 | $22.9 | $13.1 | - The company had **1,041 full-time equivalent employees** at December 31, 2023, and has been recognized as a 'Best Bank to Work For' by American Banker magazine for **11 consecutive years**[61](index=61&type=chunk)[72](index=72&type=chunk) - Origin Bancorp is a financial holding company regulated by the Federal Reserve and the Louisiana Office of Financial Institutions, while Origin Bank is supervised by the Federal Reserve and the FDIC[77](index=77&type=chunk)[106](index=106&type=chunk)[107](index=107&type=chunk) Regulatory Capital Ratios (as of December 31, 2023) | Capital Ratio | Origin Bancorp, Inc. | Origin Bank | Minimum for Well Capitalized Bank | | :------------------------------------ | :------------------- | :---------- | :------------------------------ | | Common Equity Tier 1 to Risk-Weighted Assets | 11.83 % | 11.95 % | 6.50 % | | Tier 1 Capital to Risk-Weighted Assets | 12.01 % | 11.95 % | 8.00 % | | Total Capital to Risk-Weighted Assets | 15.02 % | 13.92 % | 10.00 % | | Tier 1 Capital to Average Total Consolidated Assets (Leverage Ratio) | 10.50 % | 10.45 % | 5.00 % | - The company expects to exceed **$10 billion in total consolidated assets** during 2024, which will subject it to additional regulatory requirements, including the Volcker Rule and debit interchange fee restrictions[89](index=89&type=chunk)[120](index=120&type=chunk) - The company has fully transitioned its LIBOR-based contracts to other indices, primarily SOFR, as of December 31, 2023[136](index=136&type=chunk) [Our Company](index=6&type=section&id=Our%20Company) [Our Competitive Strengths and Banking Strategy](index=7&type=section&id=Our%20Competitive%20Strengths%20and%20Banking%20Strategy) [Our Markets](index=8&type=section&id=Our%20Markets) [Our Banking Services](index=8&type=section&id=Our%20Banking%20Services) [Information Technology Systems](index=11&type=section&id=Information%20Technology%20Systems) [Competition](index=11&type=section&id=Competition) [Human Capital Management](index=12&type=section&id=Human%20Capital%20Management) [Corporate Information](index=14&type=section&id=Corporate%20Information) [Supervision, Regulation and Other Factors](index=14&type=section&id=Supervision%2C%20Regulation%20and%20Other%20Factors) [Item 1A. Risk Factors](index=25&type=section&id=Item%201A.%20Risk%20Factors) This section details business, regulatory, and investment risks, including economic uncertainty, interest rate volatility, credit quality, operational vulnerabilities, and heightened regulatory requirements - Current uncertain economic conditions, inflation, and rapid interest rate changes pose significant challenges, potentially impacting profitability, loan demand, funding costs, and asset values[142](index=142&type=chunk)[146](index=146&type=chunk)[155](index=155&type=chunk) - The value of mortgage servicing rights (MSRs) is highly sensitive to interest rate changes, which can increase earnings volatility[152](index=152&type=chunk)[153](index=153&type=chunk) - The company faces credit risk from its loan portfolio, particularly substantial amounts of commercial real estate, construction and land development, and commercial loans, and its allowance for credit losses may prove insufficient[159](index=159&type=chunk)[162](index=162&type=chunk)[165](index=165&type=chunk)[166](index=166&type=chunk) - Geographic concentration in Texas, Louisiana, and Mississippi makes the company more sensitive to adverse changes in the local economy[164](index=164&type=chunk) - Cybersecurity threats, fraud, and reliance on third-party service providers for key infrastructure components pose significant operational and reputational risks[169](index=169&type=chunk)[173](index=173&type=chunk)[208](index=208&type=chunk) - Intense competition to attract and retain customers and profitable bankers could impair growth, decrease profitability, or result in loss of market share[174](index=174&type=chunk)[181](index=181&type=chunk) - Rapid growth, de novo branching, and future acquisitions expose the company to financial, execution, and operational risks[187](index=187&type=chunk)[189](index=189&type=chunk)[191](index=191&type=chunk) - The company is susceptible to natural disasters (e.g., hurricanes) and adverse weather events, which could disrupt operations and increase loan losses[194](index=194&type=chunk) - Operating in a highly regulated environment, the company is subject to stringent capital requirements, Bank Secrecy Act/AML compliance, CRA evaluations, and increased FDIC insurance premiums, with non-compliance potentially leading to penalties and restrictions[218](index=218&type=chunk)[219](index=219&type=chunk)[221](index=221&type=chunk)[222](index=222&type=chunk)[223](index=223&type=chunk) - If total assets exceed **$10 billion**, the company will be subject to heightened regulatory requirements, including reduced debit interchange income and Volcker Rule limitations[176](index=176&type=chunk)[177](index=177&type=chunk) - The market price of the common stock may be highly volatile, and the dividend policy may change without notice, with future dividend payments subject to restrictions and dependence on the bank's earnings[224](index=224&type=chunk)[228](index=228&type=chunk)[229](index=229&type=chunk) - An investment in the company's common stock is not an insured deposit and is subject to the risk of loss[230](index=230&type=chunk) [Summary](index=25&type=section&id=Summary) [Risks Related to Our Business](index=27&type=section&id=Risks%20Related%20to%20Our%20Business) [Risks Related to the Regulation of Our Industry](index=43&type=section&id=Risks%20Related%20to%20the%20Regulation%20of%20Our%20Industry) [Risks Related to Investing in Our Common Stock](index=44&type=section&id=Risks%20Related%20to%20Investing%20in%20Our%20Common%20Stock) [Item 1B. Unresolved Staff Comments](index=46&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - There are no unresolved staff comments[231](index=231&type=chunk) [Item 1C. Cybersecurity](index=46&type=section&id=Item%201C.%20Cybersecurity) Origin Bancorp maintains a comprehensive information security program with employee training, technical controls, and board oversight, having experienced no material cybersecurity incidents to date - Origin's information security program is designed to protect the security, availability, integrity, and confidentiality of its computer systems, networks, software, and information assets, including client data[232](index=232&type=chunk) - The program includes mandatory employee training on client information confidentiality and regular testing for phishing susceptibility, with additional training for susceptible employees[233](index=233&type=chunk)[234](index=234&type=chunk) - Technical controls, regular risk assessments, vulnerability scans, penetration tests by third-party vendors, and due diligence for third-party service providers are integral to the cybersecurity strategy[235](index=235&type=chunk)[236](index=236&type=chunk) - An Information and Cybersecurity Incident Response Plan is in place, outlining processes for responding to cybersecurity incidents, with escalation and reporting procedures to senior management[237](index=237&type=chunk)[238](index=238&type=chunk) - To date, the company has not experienced a cybersecurity incident that has materially impacted its business strategy, results of operations, or financial condition[239](index=239&type=chunk) - The Board of Directors, primarily through its Risk Committee, oversees cybersecurity threats, with management-level Cyber Risk and Information Technology Committees governing day-to-day operations[240](index=240&type=chunk) - The Information Security Officer (ISO) is responsible for the information security program, manages day-to-day cybersecurity operations, and provides updates to the Risk Committee[241](index=241&type=chunk) [Cybersecurity Risk Management and Strategy](index=46&type=section&id=Cybersecurity%20Risk%20Management%20and%20Strategy) [Cybersecurity Governance](index=47&type=section&id=Cybersecurity%20Governance) [Item 2. Properties](index=47&type=section&id=Item%202.%20Properties) Origin Bancorp's executive offices and Origin Bank are in Ruston, Louisiana, operating over 60 locations across Texas, Louisiana, and Mississippi, with owned and leased facilities - Executive offices and Origin Bank are located at 500 South Service Road East, Ruston, Louisiana[242](index=242&type=chunk) - The company operated through **over 60 locations**, including banking centers and loan production offices, in Texas, Louisiana, and Mississippi at December 31, 2023[242](index=242&type=chunk) - Origin Bank owned its main office building and **31 banking centers**, as well as a controlling interest in its operations center, with remaining facilities occupied under lease agreements[242](index=242&type=chunk) - Insurance holdings operated through **12 leased offices** primarily located in Louisiana[243](index=243&type=chunk) [Item 3. Legal Proceedings](index=47&type=section&id=Item%203.%20Legal%20Proceedings) Origin Bancorp is routinely involved in legal actions, which management expects will not materially impact financial position, though they are costly and divert attention - The company is subject to various legal actions that arise from time to time in the ordinary course of business[244](index=244&type=chunk) - Management does not expect any pending proceedings, individually or in aggregate, to have a material adverse effect on consolidated financial position or results of operations[244](index=244&type=chunk) - Legal matters are costly, divert management's attention, and may materially adversely affect reputation, even if resolved favorably[244](index=244&type=chunk) [Item 4. Mine Safety Disclosures](index=47&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to Origin Bancorp, Inc - This item is not applicable[245](index=245&type=chunk) PART II [Item 5. Market for Registrants Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=48&type=section&id=Item%205.%20Market%20for%20Registrants%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) This section details Origin Bancorp's common stock listing on NYSE, shareholder count, dividend policy, and a $50 million stock repurchase program with full capacity remaining - The company's common stock is listed on the New York Stock Exchange (NYSE) under the symbol **'OBK'**, having transferred from Nasdaq on **May 22, 2023**[21](index=21&type=chunk)[247](index=247&type=chunk)[251](index=251&type=chunk) - As of February 15, 2024, there were approximately **7,247 holders of record** of the common stock[248](index=248&type=chunk) - The company intends to pay quarterly cash dividends, subject to board approval, earnings, capital requirements, financial condition, and regulatory restrictions, with dividends from Origin Bank being the primary source[249](index=249&type=chunk) Stock Performance Comparison (May 9, 2018 - December 31, 2023) | | May 9, 2018 | Dec 31, 2018 | Dec 31, 2019 | Dec 31, 2020 | Dec 31, 2021 | Dec 31, 2022 | Dec 31, 2023 | | :-------------------------- | :---------- | :----------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Origin Bancorp, Inc. | $100.00 | $100.48 | $112.41 | $65.87 | $128.80 | $113.57 | $112.16 | | Nasdaq Composite Index | $100.00 | $90.40 | $122.24 | $175.34 | $213.15 | $142.60 | $204.52 | | Nasdaq OMX ABA Community Bank TR Index | $100.00 | $79.43 | $98.17 | $88.00 | $118.81 | $109.08 | $106.99 | - In July 2022, the Board authorized a stock repurchase program for up to **$50 million** of common stock, with **$50.0 million** of capacity remaining at December 31, 2023, as no repurchases were made during the year[254](index=254&type=chunk)[255](index=255&type=chunk) [Stock Performance Graph](index=49&type=section&id=Stock%20Performance%20Graph) [Stock Repurchases](index=49&type=section&id=Stock%20Repurchases) [Item 6. [Reserved]](index=49&type=section&id=Item%206.%20%5BReserved%5D) This item is reserved and contains no information - This item is reserved and contains no information[256](index=256&type=chunk) [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=50&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section analyzes Origin Bancorp's financial performance and condition, covering critical accounting policies, net interest income, credit losses, noninterest items, and balance sheet components, highlighting interest rate impacts and liquidity - Critical accounting estimates include the Allowance for Loan Credit Losses (ALCL), Loan Acquisition Accounting (especially for Purchase Credit Deteriorated (PCD) loans), and Mortgage Servicing Rights (MSRs) valuation[262](index=262&type=chunk)[264](index=264&type=chunk)[266](index=266&type=chunk) - The company elected a **two-year delay (2020-2021)** and a subsequent **three-year transition period (2022-2024)** for CECL's impact on regulatory capital[265](index=265&type=chunk) Net Income and Financial Ratios (Years Ended December 31) | Metric | 2023 | 2022 | 2021 | | :------------------- | :----- | :----- | :----- | | Net income (in thousands) | $83,800 | $87,715 | $108,546 | | Return on Average Assets (ROAA) | 0.84 % | 1.01 % | 1.45 % | | Return on Average Equity (ROAE) | 8.38 % | 10.81 % | 15.79 % | | Book value per common share | $34.30 | $30.90 | $30.75 | - Net interest income increased by **$24.3 million (8.8%)** to **$299.6 million** in 2023, driven by higher interest rates and average interest-earning assets, but partially offset by a **$172.5 million** increase in interest expense[273](index=273&type=chunk) - The fully tax-equivalent net interest margin (NIM-FTE) **decreased by 19 basis points to 3.23%** in 2023, primarily due to a **240 basis point increase** in interest rates paid on liabilities, partially offset by a **157 basis point increase** in asset yields[280](index=280&type=chunk) - Strategic sales of available-for-sale investment securities in 2023 (totaling **$260.8 million** with **$11.8 million realized loss**) were undertaken to pay down FHLB advances and support loan growth, with an estimated positive forward impact on NIM-FTE[278](index=278&type=chunk)[279](index=279&type=chunk)[298](index=298&type=chunk) Net Interest Income Rate/Volume Analysis (Year Ended December 31, 2023 vs. 2022) | (Dollars in thousands) | Volume Change | Yield/Rate Change | Total Change | | :------------------------------------------------- | :------------ | :---------------- | :----------- | | **Interest-earning assets:** | | | | | Loans receivable | $72,684 | $107,981 | $180,665 | | Investment securities-taxable | $(3,738) | $7,625 | $3,887 | | Investment securities-non-taxable | $(1,496) | $(578) | $(2,074) | | Non-marketable equity securities | $293 | $1,313 | $1,606 | | Interest-bearing deposits in banks | $(326) | $13,029 | $12,703 | | **Total interest-earning assets** | **$67,417** | **$129,370** | **$196,787** | | **Interest-bearing liabilities:** | | | | | Savings and interest-bearing transaction accounts | $4,703 | $110,596 | $115,299 | | Time deposits | $5,694 | $41,955 | $47,649 | | FHLB advances & other borrowings | $(2,470) | $10,317 | $7,847 | | Subordinated indebtedness | $1,090 | $623 | $1,713 | | **Total interest-bearing liabilities** | **$9,017** | **$163,491** | **$172,508** | | **Net interest income** | **$58,400** | **$(34,121)** | **$24,279** | - Provision for credit losses **decreased by $7.9 million to $16.8 million** in 2023, primarily due to a **$14.9 million provision in 2022** related to the BTH merger, offset by loan growth and increased reserves on individually evaluated loans in 2023[289](index=289&type=chunk) - Nonperforming LHFI **increased by $20.2 million** in 2023, mainly from commercial and industrial loans and residential real estate loans, leading to a decrease in the ALCL to nonperforming LHFI ratio from **876.87% to 321.66%**[289](index=289&type=chunk)[337](index=337&type=chunk) Noninterest Income (Years Ended December 31) | Noninterest income (in thousands) | 2023 | 2022 | 2021 | $ Change (2023 vs 2022) | % Change (2023 vs 2022) | | :-------------------------------- | :----- | :----- | :----- | :---------------------- | :---------------------- | | Insurance commission and fee income | $25,085 | $22,869 | $13,098 | $2,216 | 9.7 % | | Service charges and fees | $18,803 | $17,669 | $15,049 | $1,134 | 6.4 % | | Mortgage banking revenue | $3,356 | $6,722 | $12,927 | $(3,366) | (50.1)% | | Other fee income | $3,871 | $3,530 | $2,879 | $341 | 9.7 % | | Swap fee income | $1,277 | $457 | $814 | $820 | N/M | | (Loss) gain on sales of securities, net | $(11,635) | $1,664 | $1,748 | $(13,299) | N/M | | Limited partnership investment gain (loss) income | $405 | $(199) | $5,701 | $604 | N/M | | Gain (loss) on sales and disposals of other assets, net | $64 | $(175) | $(185) | $239 | N/M | | Change in fair value of equity investments | $10,096 | $0 | $0 | $10,096 | N/A | | Other income | $7,013 | $4,737 | $10,162 | $2,276 | 48.0 % | | **Total noninterest income** | **$58,335** | **$57,274** | **$62,193** | **$1,061** | **1.9 %** | Noninterest Expense (Years Ended December 31) | Noninterest expense (in thousands) | 2023 | 2022 | 2021 | $ Change (2023 vs 2022) | % Change (2023 vs 2022) | | :--------------------------------- | :----- | :----- | :----- | :---------------------- | :---------------------- | | Salaries and employee benefits | $138,819 | $118,971 | $93,026 | $19,848 | 16.7 % | | Occupancy and equipment, net | $26,783 | $20,203 | $17,347 | $6,580 | 32.6 % | | Data processing | $11,590 | $10,456 | $9,117 | $1,134 | 10.8 % | | Intangible asset amortization | $9,628 | $5,488 | $844 | $4,140 | 75.4 % | | Office and operations | $10,834 | $8,120 | $6,399 | $2,714 | 33.4 % | | Professional services | $5,931 | $3,813 | $3,644 | $2,118 | 55.5 % | | Loan-related expenses | $5,035 | $6,097 | $7,688 | $(1,062) | (17.4)% | | Advertising and marketing | $5,986 | $4,431 | $3,438 | $1,555 | 35.1 % | | Electronic banking | $4,712 | $3,958 | $3,563 | $754 | 19.1 % | | Franchise tax expense | $3,334 | $3,582 | $2,538 | $(248) | (6.9)% | | Regulatory assessments | $6,456 | $3,547 | $2,904 | $2,909 | 82.0 % | | Communications | $1,527 | $1,246 | $1,574 | $281 | 22.6 % | | Merger-related expense | $0 | $6,171 | $0 | $(6,171) | (100.0)% | | Other expenses | $4,581 | $4,336 | $4,697 | $245 | 5.7 % | | **Total noninterest expense** | **$235,216** | **$200,419** | **$156,779** | **$34,797** | **17.4 %** | - Total assets increased by **$36.5 million (0.4%) to $9.72 billion** at December 31, 2023, driven by an **$570.9 million (8.1%) increase** in loans held for investment (LHFI)[310](index=310&type=chunk) - Total deposits increased by **$475.4 million (6.1%) to $8.25 billion** at December 31, 2023, primarily due to increases in brokered time deposits and money market deposits, partially offset by a decrease in noninterest-bearing demand deposits[311](index=311&type=chunk)[350](index=350&type=chunk) - FHLB advances and other borrowings **decreased by $555.6 million (86.9%) to $83.6 million** at December 31, 2023[311](index=311&type=chunk)[359](index=359&type=chunk) Loan Portfolio Held for Investment (as of December 31) | (Dollars in thousands) | 2023 | 2022 | $ Change | % Change | | :-------------------------------- | :---------------- | :---------------- | :------- | :------- | | Real estate: | | | | | | Commercial real estate | $2,442,734 | $2,304,678 | $138,056 | 6.0 % | | Construction/land/land development | $1,070,225 | $945,625 | $124,600 | 13.2 % | | Residential real estate | $1,734,935 | $1,477,538 | $257,397 | 17.4 % | | **Total real estate** | **$5,247,894** | **$4,727,841** | **$520,053** | **11.0 %** | | Commercial and industrial | $2,059,460 | $2,051,161 | $8,299 | 0.4 % | | Mortgage warehouse lines of credit | $329,966 | $284,867 | $45,099 | 15.8 % | | Consumer | $23,624 | $26,153 | $(2,529) | (9.7)% | | **Total LHFI** | **$7,660,944** | **$7,090,022** | **$570,922** | **8.1 %** | Nonperforming Assets (as of December 31) | (Dollars in thousands) | 2023 | 2022 | | :-------------------------------- | :---------------- | :---------------- | | Total nonperforming LHFI | $30,115 | $9,940 | | Total nonperforming loans | $30,115 | $13,873 | | Total repossessed assets owned | $3,929 | $806 | | **Total nonperforming assets** | **$34,044** | **$14,679** | | Ratio of nonperforming LHFI to total LHFI | 0.39 % | 0.14 % | | Ratio of nonperforming assets to total assets | 0.35 % | 0.15 % | Allowance for Loan Credit Losses (ALCL) Analysis (Years Ended December 31) | (Dollars in thousands) | 2023 | 2022 | | :-------------------------------- | :---------------- | :---------------- | | Balance at beginning of period | $87,161 | $64,586 | | ALCL - BTH merger | $0 | $5,527 | | Provision for loan credit losses | $17,514 | $21,613 | | Net charge-offs | $7,807 | $4,565 | | **Balance at end of period** | **$96,868** | **$87,161** | | Ratio of ALCL to Nonperforming LHFI | 321.66 % | 876.87 % | | Ratio of ALCL to LHFI | 1.26 % | 1.23 % | | Net charge-offs as a percentage of Average LHFI | 0.10 % | 0.08 % | - The securities portfolio totaled **$1.27 billion** at December 31, 2023, a **decrease of $387.1 million (23.3%)** from 2022, primarily due to sales, maturities, and calls[341](index=341&type=chunk) Deposit Mix (as of December 31) | (Dollars in thousands) | 2023 Balance | 2023 % of Total | 2022 Balance | 2022 % of Total | | :----------------------- | :------------- | :-------------- | :------------- | :-------------- | | Noninterest-bearing demand | $1,919,638 | 23.3 % | $2,482,475 | 32.0 % | | Money market | $2,772,807 | 33.6 % | $2,442,559 | 31.4 % | | Interest-bearing demand | $1,875,864 | 22.7 % | $1,737,158 | 22.3 % | | Time deposits | $967,901 | 11.7 % | $781,880 | 10.0 % | | Brokered time deposits | $444,989 | 5.4 % | $5,407 | 0.1 % | | Savings | $269,926 | 3.3 % | $326,223 | 4.2 % | | **Total deposits** | **$8,251,125** | **100.0 %** | **$7,775,702** | **100.0 %** | - Estimated uninsured/uncollateralized deposits were **$2.73 billion (33.1% of total deposits)** at December 31, 2023, down from **$3.43 billion (44.1%)** in 2022[358](index=358&type=chunk) Borrowings (as of December 31) | (Dollars in thousands) | 2023 | 2022 | | :-------------------------------- | :---------------- | :---------------- | | Short-term FHLB advances | $70,000 | $550,000 | | Long-term FHLB advances | $6,474 | $6,740 | | GNMA repurchase liability | $0 | $24,569 | | Overnight repurchase agreements with depositors | $7,124 | $27,921 | | Correspondent short-term borrowings | $0 | $30,000 | | **Total FHLB advances and other borrowings** | **$83,598** | **$639,230** | | Subordinated indebtedness, net | $194,279 | $201,765 | - The company and Origin Bank were in compliance with all applicable regulatory capital requirements and classified as 'well capitalized' at December 31, 2023[387](index=387&type=chunk) Regulatory Capital Ratios (as of December 31, 2023) | Capital Ratio | Origin Bancorp, Inc. | Origin Bank | | :------------------------------------ | :------------------- | :---------- | | Common Equity Tier 1 Capital to Risk-Weighted Assets | 11.83 % | 11.95 % | | Tier 1 Capital to Risk-Weighted Assets | 12.01 % | 11.95 % | | Total Capital to Risk-Weighted Assets | 15.02 % | 13.92 % | | Tier 1 Capital to Average Total Consolidated Assets (Leverage Ratio) | 10.50 % | 10.45 % | [Critical Accounting Policies and Estimates](index=50&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) [General](index=51&type=section&id=General) [Results of Operations](index=52&type=section&id=Results%20of%20Operations) [Net Interest Income and Net Interest Margin](index=52&type=section&id=Net%20Interest%20Income%20and%20Net%20Interest%20Margin) [Provision for Credit Losses](index=57&type=section&id=Provision%20for%20Credit%20Losses) [Noninterest Income](index=57&type=section&id=Noninterest%20Income) [Noninterest Expense](index=59&type=section&id=Noninterest%20Expense) [Income Tax Expense](index=60&type=section&id=Income%20Tax%20Expense) [Comparison of Financial Condition at December 31, 2023, and December 31, 2022](index=60&type=section&id=Comparison%20of%20Financial%20Condition%20at%20December%2031%2C%202023%2C%20and%20December%2031%2C%202022) [Loan Portfolio](index=60&type=section&id=Loan%20Portfolio) [Nonperforming Assets](index=62&type=section&id=Nonperforming%20Assets) [Potential Problem Loans](index=64&type=section&id=Potential%20Problem%20Loans) [Allowance for Loan Credit Losses](index=64&type=section&id=Allowance%20for%20Loan%20Credit%20Losses) [Securities](index=67&type=section&id=Securities) [Deposits](index=69&type=section&id=Deposits) [Borrowings](index=71&type=section&id=Borrowings) [Holding Company Line of Credit](index=72&type=section&id=Holding%20Company%20Line%20of%20Credit) [Subordinated Indebtedness](index=72&type=section&id=Subordinated%20Indebtedness) [Liquidity and Capital Resources](index=72&type=section&id=Liquidity%20and%20Capital%20Resources) [Stockholders' Equity](index=74&type=section&id=Stockholders'%20Equity) [Stock Repurchases](index=74&type=section&id=Stock%20Repurchases) [Regulatory Capital Requirements](index=74&type=section&id=Regulatory%20Capital%20Requirements) [Item 7A. Quantitative and Qualitative Disclosures about Market Risk](index=75&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section details the management of interest rate risk through ALCO, derivative instruments, and simulation models, outlining policy limits for net interest income sensitivity and addressing inflation impacts - The company's primary component of market risk is interest rate volatility, managed by the Bank's Asset-Liability Management Committee (ALCO) through balance sheet structuring and derivative financial instruments[389](index=389&type=chunk)[391](index=391&type=chunk)[392](index=392&type=chunk) - Interest rate risk simulation models and shock analyses are used to test the sensitivity of net interest income and fair value of equity to changes in market interest rates[394](index=394&type=chunk) - Internal policy specifies limits for estimated net interest income at risk for instantaneous parallel shifts of the yield curve, e.g., not more than **8.0% decline for a 100 basis point shift**[395](index=395&type=chunk) Simulated Impact of Interest Rate Changes on Net Interest Income and Fair Value of Equity (December 31, 2023) | Change in Interest Rates (basis points) | % Change in Net Interest Income | % Change in Fair Value of Equity | | :------------------------------------ | :------------------------------ | :------------------------------- | | +400 | 15.9 % | 4.1 % | | +300 | 11.9 % | 3.5 % | | +200 | 8.0 % | 3.0 % | | +100 | 0.3 % | (1.1)% | | Base | | | | -100 | (4.5)% | (2.6)% | | -200 | (0.8)% | (0.1)% | | -300 | (0.8)% | (1.4)% | | -400 | (1.0)% | (2.9)% | - Inflation affects financial institutions by increasing costs of goods, services, salaries, and benefits, and generally decreases the market value of investments and loans[402](index=402&type=chunk) - The company has fully transitioned its LIBOR-based contracts to other indices, primarily SOFR, as of December 31, 2023, following the discontinuation of LIBOR[136](index=136&type=chunk)[405](index=405&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=78&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents Origin Bancorp's audited consolidated financial statements for 2021-2023, including balance sheets, income statements, and cash flows, with an unqualified audit opinion from FORVIS, LLP - The consolidated financial statements for the years ended December 31, 2023, 2022, and 2021 include the Consolidated Balance Sheets, Statements of Income, Comprehensive Income (Loss), Changes in Stockholders' Equity, and Cash Flows[408](index=408&type=chunk) - FORVIS, LLP, the independent registered public accounting firm, issued an unqualified opinion on the consolidated financial statements and on the effectiveness of internal control over financial reporting as of December 31, 2023[410](index=410&type=chunk)[411](index=411&type=chunk) - The valuation of the Allowance for Credit Losses (ACL) was identified as a critical audit matter due to the high degree of subjectivity in management's estimates[415](index=415&type=chunk)[419](index=419&type=chunk) - Key accounting policies include those for the Allowance for Credit Losses (ALCL), Loan Acquisition Accounting (including Purchase Credit Deteriorated (PCD) loans), and Mortgage Servicing Rights (MSRs) valuation[468](index=468&type=chunk)[460](index=460&type=chunk)[480](index=480&type=chunk) - Basic earnings per common share was **$2.72 in 2023**, **$3.29 in 2022**, and **$4.63 in 2021**; diluted earnings per common share was **$2.71 in 2023**, **$3.28 in 2022**, and **$4.60 in 2021**[531](index=531&type=chunk) Consolidated Balance Sheet Highlights (as of December 31) | (Dollars in thousands) | 2023 | 2022 | | :-------------------------------- | :---------------- | :---------------- | | Total cash and cash equivalents | $280,441 | $358,972 | | Total securities | $1,272,054 | $1,659,127 | | Loans, net of ALCL | $7,564,076 | $7,002,861 | | Total assets | $9,722,584 | $9,686,067 | | Total deposits | $8,251,125 | $7,775,702 | | FHLB advances, repurchase obligations and other borrowings | $83,598 | $639,230 | | Subordinated indebtedness, net | $194,279 | $201,765 | | Total liabilities | $8,659,679 | $8,736,124 | | Total stockholders' equity | $1,062,905 | $949,943 | Consolidated Statements of Income Highlights (Years Ended December 31) | (Dollars in thousands) | 2023 | 2022 | 2021 | | :-------------------------------- | :---------------- | :---------------- | :---------------- | | Total interest and dividend income | $523,391 | $326,604 | $241,656 | | Total interest expense | $223,834 | $51,326 | $25,404 | | Net interest income | $299,557 | $275,278 | $216,252 | | Provision for credit losses | $16,753 | $24,691 | $(10,765) | | Total noninterest income | $58,335 | $57,274 | $62,193 | | Total noninterest expense | $235,216 | $200,419 | $156,779 | | Income before income tax expense

Financial Data and Key Metrics Changes - In Q4, the company reported diluted earnings per share of $0.43, with adjusted EPS at $0.60 after excluding a $1.8 million write-down of mortgage servicing rights and a $4.6 million loss on securities sold [12] - The allowance for credit losses increased by $1.7 million to $96.9 million, maintaining a stable ratio of 1.26% of total loans held for investment [11] - Total deposits declined by 1.5% during the quarter, but increased by 1.3% when excluding brokered deposits [36] Business Line Data and Key Metrics Changes - Noninterest income for Q4 was reported at $8.2 million, with adjusted noninterest income at $14.6 million, down from $15.2 million in Q3 due to expected seasonality in the insurance business [16] - The company achieved a net interest margin (NIM) of 3.19%, reflecting a 5 basis point expansion during the quarter [37] Market Data and Key Metrics Changes - The company anticipates deposit growth in the mid-single-digit range for 2024, which will support loan growth in a similar range [8] - The Southeast market expansion is expected to drive profitable growth, with the new market projected to achieve breakeven within four quarters [15] Company Strategy and Development Direction - The company aims to remain under $10 billion in assets, finishing 2023 at $9.7 billion, while preparing for a new regulatory environment [5] - Investments in technology and processes are prioritized to enhance customer experience and drive market share growth [32] - The strategic investment in the Southeast market is seen as a significant growth opportunity, with a focus on relationship-driven banking [28][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate economic headwinds while maintaining sound credit quality [11] - The company is optimistic about future growth opportunities, particularly in Texas and the newly entered Southeast markets [42] - Management noted that the current economic environment presents opportunities for growth, emphasizing a proactive approach [111] Other Important Information - The company is exploring the sale of its mortgage servicing business, recognizing an impairment of $1.8 million on the associated asset [40] - The total capital ratio exceeded 9%, indicating strong capital flexibility for future growth initiatives [56] Q&A Session Summary Question: What types of customers will the new Southeast market team focus on? - The focus will be on diversifying and growing, particularly in C&I and operating companies, with an emphasis on building relationships in the new market [46][48] Question: How does the company view loan growth in relation to deposit growth? - Loan growth is governed by deposit growth, with a conservative estimate of 4% to 7% on the deposit side, which aligns with loan growth expectations [63] Question: What is the outlook for net interest margin (NIM) in the upcoming year? - NIM is expected to remain flat in the near term, with potential for expansion in the second half of the year due to fixed-rate loan repricing [67][68] Question: How does the company plan to deploy proceeds from the recent bond sale? - Proceeds will be used to fund loan growth in the new Southeast market and other existing markets, with quick deployment expected [108] Question: What are the company's thoughts on the insurance business? - The company remains committed to growing its insurance business, viewing it as a significant opportunity for enhancing noninterest income [90]

Financial Performance Highlights - Net Interest Margin (NIM-FTE) was 3.19% for 4Q23, a 5 basis point increase compared to 3Q23[6] - Net income was $13.425 million in 4Q23, compared to $24.313 million in 3Q23[6] - Adjusted Pre-Tax, Pre-Provision (PTPP) Earnings were $26.654 million in 4Q23, compared to $30.663 million in 3Q23[6] - Diluted EPS was $0.43 in 4Q23, compared to $0.79 in 3Q23[6] - Return on Average Assets (ROAA) was 0.55% in 4Q23, compared to 0.96% in 3Q23[6] - Return on Average Stockholders' Equity (ROAE) was 5.26% in 4Q23, compared to 9.52% in 3Q23[6] Balance Sheet - Total Loans Held for Investment (LHFI) were $7.661 billion in 4Q23[6, 15] - Total Assets were $9.723 billion in 4Q23[6] - Total Deposits were $8.251 billion in 4Q23[6] - LHFI to deposits, excluding mortgage warehouse lines of credit (MW LOC), were 88.8% at December 31, 2023, compared to 87.0% at September 30, 2023[6]

PART I - FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents Origin Bancorp, Inc.'s unaudited consolidated financial statements for Q3 and YTD 2023, detailing financial position, performance, and cash flows with explanatory notes [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) Total assets slightly increased to $9.73 billion by Q3 2023, driven by loan growth and deposit increases, while FHLB advances decreased and equity rose Consolidated Balance Sheet Highlights (in thousands) | Account | September 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Total Assets | $9,733,303 | $9,686,067 | | Total Cash and Cash Equivalents | $305,278 | $358,972 | | Total Securities | $1,308,401 | $1,659,127 | | Loans, net | $7,472,886 | $7,002,861 | | Total Deposits | $8,374,488 | $7,775,702 | | FHLB advances and other borrowings | $12,213 | $639,230 | | Total Stockholders' Equity | $998,945 | $949,943 | [Consolidated Statements of Income](index=7&type=section&id=Consolidated%20Statements%20of%20Income) Net income for Q3 2023 significantly increased to $24.3 million, driven by lower credit loss provisions and higher noninterest income, despite a decrease in net interest income Key Income Statement Data (in thousands, except per share amounts) | Metric | Q3 2023 | Q3 2022 | YTD 2023 | YTD 2022 | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $74,130 | $78,523 | $226,568 | $190,529 | | Provision for Credit Losses | $3,515 | $16,942 | $14,018 | $20,067 | | Total Noninterest Income | $18,119 | $13,723 | $50,139 | $43,845 | | Total Noninterest Expense | $58,663 | $56,241 | $174,310 | $143,165 | | Net Income | $24,313 | $16,243 | $70,375 | $58,237 | | Diluted EPS | $0.79 | $0.57 | $2.28 | $2.30 | [Consolidated Statements of Comprehensive Income (Loss)](index=9&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) Comprehensive income improved significantly to $4.5 million in Q3 2023, primarily due to a smaller other comprehensive loss compared to the prior year Comprehensive Income (Loss) Summary (in thousands) | Metric | Q3 2023 | Q3 2022 | YTD 2023 | YTD 2022 | | :--- | :--- | :--- | :--- | :--- | | Net Income | $24,313 | $16,243 | $70,375 | $58,237 | | Other Comprehensive Loss, net of tax | $(19,850) | $(59,254) | $(12,854) | $(180,962) | | Comprehensive Income (Loss) | $4,463 | $(43,011) | $57,521 | $(122,725) | [Consolidated Statements of Changes in Stockholders' Equity](index=10&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) Stockholders' equity increased to $998.9 million by Q3 2023, primarily driven by net income, partially offset by comprehensive loss and dividends - Total stockholders' equity increased by **$49.0 million** during the first nine months of 2023[29](index=29&type=chunk) - Key changes for the nine months ended September 30, 2023 include: - Net Income: +**$70.4 million** - Other Comprehensive Loss: -**$12.9 million** - Dividends Declared: -**$14.1 million** - Stock-based compensation and other activities: +**$5.6 million**[29](index=29&type=chunk) [Consolidated Statements of Cash Flows](index=12&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities was $100.5 million, while investing and financing activities resulted in net cash usage, leading to an overall decrease in cash and cash equivalents Cash Flow Summary for Nine Months Ended Sep 30 (in thousands) | Activity | 2023 | 2022 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $100,475 | $93,811 | | Net Cash Used in Investing Activities | $(132,772) | $(276,658) | | Net Cash Used in Financing Activities | $(21,397) | $(222,301) | | **Net Decrease in Cash** | **$(53,694)** | **$(405,148)** | [Condensed Notes to Consolidated Financial Statements](index=14&type=section&id=Condensed%20Notes%20to%20Consolidated%20Financial%20Statements) These notes provide detailed accounting policies and financial data, covering credit losses, fair value, loan portfolios, borrowings, capital adequacy, and merger impacts [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=53&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q3 and YTD 2023 financial performance, highlighting net income growth, net interest margin pressure, credit quality, balance sheet changes, and strong liquidity and capital [2023 Third Quarter Highlights](index=53&type=section&id=2023%20Third%20Quarter%20Highlights) Q3 2023 highlights include significant net income growth, influenced by a loss on securities sale and a gain on an equity security, with increased book value per share - Net income for Q3 2023 was **$24.3 million**, an increase of **49.7% YoY**, with diluted EPS of **$0.79**[226](index=226&type=chunk) - A strategic sale of **$181.9 million** in AFS securities resulted in a **$7.2 million loss**, negatively impacting EPS by **$0.18**[226](index=226&type=chunk) - A **$10.1 million** positive valuation adjustment on a non-marketable equity security positively impacted EPS by **$0.26**[226](index=226&type=chunk) [Results of Operations](index=54&type=section&id=Results%20of%20Operations) Q3 2023 net interest income decreased due to rising deposit costs, but net income benefited from lower credit loss provisions and higher noninterest income, while YTD net interest income grew Net Interest Margin (NIM) - FTE | Period | NIM-FTE | Change (bps) | | :--- | :--- | :--- | | Q3 2023 | 3.14% | -54 bps (YoY) | | YTD 2023 | 3.24% | -4 bps (YoY) | - In Q3 2023, a strategic sale of AFS securities with a book value of **$181.9 million** resulted in a **$7.2 million loss**[234](index=234&type=chunk)[247](index=247&type=chunk) - Proceeds were used to pay down FHLB advances, with an estimated positive forward impact to NIM of **11 basis points**[234](index=234&type=chunk)[247](index=247&type=chunk) - Q3 2023 noninterest income was boosted by a **$10.1 million** gain from a positive valuation adjustment on a non-marketable equity security[248](index=248&type=chunk) - The provision for credit losses decreased significantly to **$3.5 million** in Q3 2023 from **$16.9 million** in Q3 2022, as the prior year included a large provision related to the BTH merger[242](index=242&type=chunk) [Financial Condition](index=65&type=section&id=Financial%20Condition) Total assets reached $9.73 billion, driven by loan growth funded by increased deposits, while nonperforming loans rose and the allowance for credit losses remained stable Loan Portfolio Composition (in thousands) | Loan Type | Sep 30, 2023 | Dec 31, 2022 | % Change | | :--- | :--- | :--- | :--- | | Total Real Estate | $5,200,816 | $4,727,841 | 10.0% | | Commercial and Industrial | $2,058,073 | $2,051,161 | 0.3% | | **Total LHFI** | **$7,568,063** | **$7,090,022** | **6.7%** | Credit Quality Ratios | Ratio | Sep 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Nonperforming LHFI to Total LHFI | 0.42% | 0.14% | | ALCL to Total LHFI | 1.26% | 1.23% | | ALCL to Nonperforming LHFI | 301.12% | 876.87% | - Total deposits increased by **$598.8 million (7.7%)** since year-end 2022, driven by a **$663.8 million** increase in brokered time deposits and a **$255.0 million** increase in money market deposits, offset by a **$473.8 million** decrease in noninterest-bearing demand deposits[313](index=313&type=chunk) - Estimated uninsured and uncollateralized deposits decreased to **32.8%** of total deposits from **44.1%** at year-end 2022[318](index=318&type=chunk) [Liquidity and Capital Resources](index=73&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with $5.09 billion in available sources and robust capital ratios significantly exceeding regulatory minimums - Total primary and secondary liquidity sources were **$5.09 billion** at September 30, 2023[331](index=331&type=chunk) - The company has borrowing capacity of **$2.27 billion** from the FHLB and **$1.69 billion** from the FRB discount window[320](index=320&type=chunk)[330](index=330&type=chunk) Origin Bancorp, Inc. Regulatory Capital Ratios | Ratio | Sep 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Common Equity Tier 1 | 11.46% | 10.93% | | Tier 1 Capital | 11.64% | 11.12% | | Total Capital | 14.61% | 14.23% | | Tier 1 Leverage | 10.00% | 9.66% | [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=77&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company manages interest rate risk using simulation models, showing sensitivity to rate changes, and has completed its transition from LIBOR to SOFR with no material impact Interest Rate Sensitivity Analysis (12-Month Horizon) | Change in Interest Rates (bps) | % Change in Net Interest Income | % Change in Fair Value of Equity | | :--- | :--- | :--- | | +400 | +9.6% | -7.1% | | +200 | +5.0% | -3.5% | | +100 | -1.2% | -3.9% | | -100 | +0.8% | +2.8% | - The company has completed its transition away from LIBOR, converting remaining instruments to SOFR-based rates effective July 1, 2023, with no material financial impact[358](index=358&type=chunk) [Item 4. Controls and Procedures](index=79&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of September 30, 2023, with no material changes to internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the reporting period[359](index=359&type=chunk) - No changes in internal control over financial reporting occurred during Q3 2023 that materially affected, or are reasonably likely to materially affect, internal controls[360](index=360&type=chunk) Part II - OTHER INFORMATION [Item 1. Legal Proceedings](index=80&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various ordinary course legal actions, none of which are expected to have a material adverse effect on its financial condition or liquidity - The company is party to various legal actions in the ordinary course of business, but management does not expect any to have a material adverse effect on its financial condition[205](index=205&type=chunk)[361](index=361&type=chunk) [Item 1A. Risk Factors](index=80&type=section&id=Item%201A.%20Risk%20Factors) No material changes were reported to the risk factors previously disclosed in the 2022 Form 10-K or prior 2023 quarterly reports - No material changes were made to the risk factors previously disclosed in the 2022 Form 10-K or prior 2023 quarterly reports[363](index=363&type=chunk) [Item 2. Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of Equity Securities](index=80&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities,%20Use%20of%20Proceeds%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company has an authorized $50 million stock repurchase program, but no shares were repurchased during Q3 2023 - A stock repurchase program for up to **$50 million** was authorized in July 2022[364](index=364&type=chunk) - No stock repurchases were made during the quarter ended September 30, 2023[365](index=365&type=chunk) [Item 3. Defaults Upon Senior Securities](index=80&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) Not applicable [Item 4. Mine Safety Disclosures](index=80&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Not applicable [Item 5. Other Information](index=80&type=section&id=Item%205.%20Other%20Information) No directors or executive officers adopted, terminated, or modified Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q3 2023 - No directors or executive officers adopted, terminated, or modified a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during Q3 2023[368](index=368&type=chunk) [Item 6. Exhibits](index=81&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including corporate documents and CEO/CFO certifications Signatures

Financial Performance - Total loans held for investment (LHFI) were $7.09 billion at June 30, 2023, an increase of $279.9 million, or 4.1%, compared to December 31, 2022[217]. - Total deposits reached $8.49 billion at June 30, 2023, reflecting an increase of $714.3 million, or 9.2%, compared to December 31, 2022[217]. - Net interest income was $75.3 million for the three months ended June 30, 2023, an increase of $15.8 million, or 26.5%, compared to the same period in 2022[222]. - Net income increased by $449,000, or 2.1%, to $21.8 million for the three months ended June 30, 2023, compared to $21.3 million for the same period in 2022[221]. - Total assets reached $10,190,356 thousand as of June 30, 2023, compared to $7,944,720 thousand a year earlier, reflecting a growth of 28.3%[229]. - Net interest income for the six months ended June 30, 2023, was $152.4 million, an increase of $40.4 million, or 36.1%, compared to the same period in 2022[248]. - Noninterest income increased by $1.9 million, or 6.3%, to $32.0 million for the six months ended June 30, 2023, compared to $30.1 million for the same period in 2022[264]. Interest Rates and Margins - The net interest margin (NIM) was 3.16% for the three months ended June 30, 2023, a decrease of seven basis points from 3.23% for the same period in 2022[226]. - The yield on interest-earning assets increased to 5.50%, a 197 basis point increase from 3.53% for the three months ended June 30, 2022[226]. - The rate paid on total deposits increased to 2.26%, a 207 basis point increase from 0.19% for the same period in 2022[226]. - The fully tax-equivalent net interest margin was 3.29% for the six months ended June 30, 2023, a 25 basis point increase from 3.04% for the same period in 2022[253]. - The average annualized rate paid on interest-bearing deposits increased to 2.78% for the six months ended June 30, 2023, compared to 0.27% for the same period in 2022[314]. Loan and Credit Quality - The provision for credit losses increased to $4.3 million in Q2 2023, up from $3.5 million in Q2 2022, marking a rise of 24.4%[234]. - Nonperforming loans increased by $31.2 million, with the allowance for loan credit losses to nonperforming loans at 280.74% as of June 30, 2023, down from 448.16% a year earlier[234]. - Nonperforming loans increased by $23.7 million to $33.6 million as of June 30, 2023, with significant increases in commercial and industrial loans and residential real estate loans[290]. - The ratio of nonperforming LHFI to total LHFI rose to 0.44% from 0.14% at the end of 2022, indicating a deterioration in loan performance[290]. - The total charge-offs for the six months ended June 30, 2023, were $5.04 million, compared to $4.59 million for the same period in 2022[302]. Expenses and Employee Costs - Noninterest expense for the three months ended June 30, 2023, increased by $14.7 million, or 33.4%, to $58.9 million compared to $44.2 million for the same period in 2022[242]. - Salaries and employee benefits rose by $7.2 million, primarily due to an increase in full-time equivalent employees from 841 to 1,017, with the BTH merger contributing 94 employees[243]. - Total noninterest expense increased by $28.7 million, or 33.0%, to $115.6 million for the six months ended June 30, 2023, compared to $86.9 million for the same period in 2022[270]. Mergers and Acquisitions - Total noninterest income rose to $15,636 thousand in Q2 2023, a 10.0% increase from $14,216 thousand in Q2 2022, primarily due to the merger with BTH[237]. - The BTH merger contributed $1.3 million in incentive compensation and 94 new full-time positions, impacting salaries and employee benefits expenses significantly[273]. - Intangible asset amortization expense rose by $2.0 million, primarily due to the core deposit intangible established with the BTH merger[245]. Liquidity and Capital - The common equity Tier 1 capital ratio was 11.01% as of June 30, 2023, compared to 10.93% at December 31, 2022[217]. - The company borrowed approximately $700.0 million to hold excess cash for contingency liquidity during the quarter ended June 30, 2023[220]. - The loan to deposit ratio was 89.8% at June 30, 2023, compared to 91.2% at December 31, 2022[330]. - The Company declared dividends of $0.30 per share, totaling $9.4 million for the period[333]. Economic and Market Conditions - Economic conditions are currently affected by record inflation and recessionary concerns, which have slowed the single-family housing market and impacted economic growth[349]. - Inflation has increased costs for goods, services, salaries, and occupancy, adversely affecting liquidity, earnings, and stockholders' equity[353]. Interest Rate Risk Management - The company’s interest rate risk management includes simulation models that estimate the impact of interest rate changes on net interest income and fair value of equity[344]. - The company has entered into interest rate swaps to mitigate interest rate risk in specific transactions, although it is not a regular practice[341]. - The Asset-Liability Management Committee regularly reviews the sensitivity of assets and liabilities to interest rate changes and adjusts strategies accordingly[342].