OBNK - Earnings call transcript Q1 2022

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Operator

Good morning and welcome to the Origin Bancorp Inc.

First Quarter 2022 Earnings Conference Call. Please note this event is being recorded. I would now like to turn the conference over to Chris Reigelman, Head of Investor Relations. Please go ahead.

Chris Reigelman

morning. Good for you us joining thank today. And during our of which issued a presentation refer earnings website, press copy a slide to will we afternoon, yesterday that presentation. is with release along We this available our on slide Please our which statements use Safe of measures. financial forward-looking includes of regarding presentation non-GAAP refer statements X to and slide our Harbor

Harbor Bancorp's on Please our CEO For Chief the Drake Banking Chairman, our President we'll address earnings slide on in any our available Moore. six those presentation presentation our I'm also Hall; that questions earnings filed slide Bank, Crotwell; note is release. press and joining available happy subject made statement by and yesterday. After Chief to with the the phone, President Credit and today's Officer, Chief statements our our may Origin of Mills; Steve the to of Brolly; and have. Origin Safe at Officer, Jim you our Lance call Harbor are page and joined this All Risk please www.origin.bank. by are be during Preston note release Safe Financial CEO, Officer, presentation, morning website comments SEC

I'll Now, call you, to Drake. the turn over

Drake Mills

Chris. And you, Thank good morning.

grew focus start value proud I I our held excluding were by the the the organic external mortgage economy, reflects that we relationships. PPP continued $X.XX loans XXXX how am at and factors of broader growth of building are for core adding how significant forward, we our to am Despite and business. long Looking strategy affecting and quarter our annualized $XXX.X performed teams our on a which term last Total investment deposits warehouse growth on first X.X% bearing pleased and deposit in and compared drove fundamentals would billion, clients. our positioned X% moving This is our on to how expectations. loans, that our Lance with on add to great the will of million specifically and and are in the position non-interest meet a our reflection is puts XX.X% but strategy I markets. loan an relationships a throughout XX.X% compared growth, in increase deposits, profitable detail and into Total last basis get quarter quarter growth of a increase our focus to more and or us annualized.

$XX.X diluted that It's new customers, we know truly advantage a in talk as build markets but you something in new Looking provide on reserved. credit we and equally it we Jim income $X.XX. income, on in and I'm our we who as credit our great bankers. about, are not color million you important corporate competitive takes for pride of pleased we an reported $XXX,XXX Origin portfolio, earnings, of released the with at more Most are will pretax, EPS performance. $XX.X the credit and a the statement, culture. as day. our preprovision million organization net attract familiar story every of we just attract of We overall with but It is us

During the our first added primarily producers, seven quarter, in Texas markets. we new

bankers in am to optimistic opportunities We our drive growth. teams we've I Houston. our existing deposits. the as Slide will growth X on and as and Texas Dallas, loans the continue Worth Fort continue well of consistent in to capitalize standpoint experienced that shows new meaningful from

it over I'll Now turn Lance. to

Lance Hall

clients feel with bankers growth. corporate vision model who We Origin allow management share and in drive growing amazing that team incredibly purpose unique drive our award-winning a of and the that fortunate in bank have hiring double-digit communities. with expand bankers culture, Thanks, Drake. best to to a in to platform best strongly to significant to a and Origin creates in a build an strategy, the should retaining combined America Texas, advantage geographic serving competitive is business our consistently our This create a and our culture markets. approach

share a of time manage of spend and great with deal go about the through process trusted our with teams a you often, being I long-term meaningful As we the we concept build and adviser, to talking relationships.

that in action. into a our business Our is growth of consistent core philosophy our reflection bankers putting

warehouse For PSMA, the for excluding or X.X%. investment, loans million held total $XXX.X and mortgage first quarter, increased

puts XX.X% in the a begin strong and a As as annualized growth Drake year. mentioned, we position us this is rate

planned, As market. majority the in Texas our we saw growth of this

loan slide to pleased XX, our I'm of with impressive add our the and and can you performers we experienced diversification to bankers officers continue team see throughout an loan portfolio. seeing. high are our already also growth a of mortgage On We markets. breakdown

come for we in held-for-investment. down of have from historic high in but expected mortgage range XXXX We our to book, our our levels remain XX% of loans warehouse total X%

Total is quarter. grew the grew very million evident our that non-interest of our deposit X% I'm our And currently relationships total deposits growth, to also quarter. Our bearing growth commitment non-interest XX% million pleased compared of mix. or long-term X.X% or XXXX. to in QX building deposits last deposit compared bearing that $XXX.X $XXX.X deposits represent meaningful, for to

to and build our continue and that throughout strategic bankers We markets. results loyalty have plan drive talented our confidence will

credit quality turn over to it metrics. to through I'll our Now go Jim

Jim Crotwell

Thanks, Lance.

loans down X.XX% year ago. XX% to total many X.XX%, year. in at are of can which a is credit QX coming net trend see reduction from level held-for-investment the net at XXXX. of PPP, ended from of you a level was to we to with to are loans X.XX% due of classified coming as net the loans the quarter the level compares to held-for-investment slide of the X.X% year at total pleased held-for-investment Non-performing with PPP Past X.XX% of favorably XX, reported reduced loans loans very This quality. investment on of and there pleased loans which reasons a loans. of our compares total held-for-investment level of be held-for-investment a PPP in held-for-investment ago a loans stable, past X.XX%, Classified our As over

loans year-end focus levels million, charge-offs to of a the underwriting quarter on unwavering our net charge-offs. relationship quarter reflecting be resiliency decreased our past and driven $X.X held-for-investment as stability in of sound quarter to credit X the credit as million reduction levels by to structure. and of average X.XX%, net and reducing the portfolio focus non-performing annualized of $XX.X points credit The reduced on reduced from reduced at solid levels last a our well losses banking, for stable continues We a dues, Lastly, for allowance was of XXXX. loans, our from levels. perspective, from levels It basis loans, came classified

of of our in was of loans, by loans upon net As the and The the XX/XX/XXXX, mortgage metrics adjustments held-for-investment warehouse with ACL continued forecast. driven and no and held-for-investment discussed model loans X.X% economic from reserve assumptions X.XX% of PPP based improving previously, reserve respectively. levels credit decrease of reducing our represented to X.XX%, X.XX% material

well pertains pressures, to economic forecast, geopolitical uncertainty due continued as it risk. inflation, to chain As remains disruptions, labor supply related increased to global as risks rising

stability over very of shared it Steve. have the performance As I'll to turn our are portfolio. with calls, we pleased on and we recent overall now our loan

Stephen Brolly

and is XX slide. Slide portfolio cost held-for-investment our Jim. yield, Thanks, loans

of held-for-investment basis yield During PPP decreased points, X quarter-over-quarter. impact forgiveness the includes loans the first loan quarter, our which total on

decrease continued bankers our basis have is approach, loans until as yield rates, Fed loan the PPP basis deposit as on increase X the deposits we managing done the the right of didn't of this basis one decreased rates shows Through will for as We our raise continue interest quarter. continue loans, graph increases. Excluding in to our the a top our XX great of increased our in the X focused quarter impact their will on remain yields expected rate and quarter. held-for-investment total cost The funds to Fed point interest of later anticipate our cost relationship-focused points job points strategy. to

can bottom and composition. fixed loan see variable graph, you the On our left

income beneficial our sensitive point the trend interest interest increase, interest $X.X receive right shows, interest graph interest rate XX in XXX interest of during will LIBOR interest note a of rate mortgage NIM prime balances. to Slide rates to a above left would our asset this at interest and XXX floor warehouse net shift XXX% shows incremental will loans rates and income their primarily rate total the of the our rate. benefit we of basis rate were The XX% approximately The March of PPP increased total income and XX.X% of amount beta XXXX. of by to average one-month interest driven net increase. current bottom rate indexed at of Therefore, will basis NIM. receive and rate This With bank, XX points, interest billion benefit. the occur, have trends. increases. parallel recent from the the million in a generate an have loans The floor above QX decreased an a have increase interest shows $X.X basis will in Origin. X.X% increased or If million As decrease or quarter, XX% fees five-quarter and interest million income. XX, the point a on loans a or $XX.X graph loans these be $XXX With net an for expect

to million our growth to graph the is trend investment loans, to with presented. during trend shows to net million and five yield. with our the the on improve first excess warehouse investment loans, quarterly contributing five $XX.X quarter periods average accumulated XXXX. X.X% shows the from the the and liquidity mortgage that warehouse one mortgage graph believe the to other an in left largest net graph liquidity quarter $XXX quarter excluding from million The interest a equity quarter-over-quarter. was our is top and excess The or securities. slide. top non-marketable from throughout changes due increased $XXX loans. $XX or received new bottom excluding our improved quarter interest AOCI. XX, bounce PPP cash in will a dividend increased in of right The left quarter, shows and the PPP Every as The of exception mortgage average net change interest quarter. prior fourth The NIM income balance comprehensive graph imbalance PPP Excluding income of We fourth bottom securities compared continue to impact Slide component income million the our income of warehouse in annual the

with liquidity fair short As reported fund quarter, not loss the steepened and aa any AOCI. changes future on-hand from unrealized proven net end $XX million our IPO. adequate have do yield curve in expected revenue since these was grow at of To and of first the intend of the through the we the we securities quarter tax in addition cash sell our loan revenue the as available-for-sale securities end to graph flows The XX of base. is values of the to effect to our losses, securities growth, deposit unrealized our distribution. shows top approximately left a the net growth Slide net ability

During XXXX seasonal quarterly closed income, of quarter and XX, an on from XXXX Agency and XX% to from the the net non-interest million non-interest MSR. the in $X.X the was quarter. fourth the other million is The the left million contributing in run components one expense earlier a top increase total of million $X.X $XXX,XXX details with XXXX. of gain our fair mentioned of in third Slide reversal $XX $X.X of that improving quarter, values driven market increased an loss contributed from our expense limited this non-interest we XX% million a the of the added reported income additional non-interest December rate. This The income a revenue partnership represents quarter, million investment. in fair banking and value first fair $XX.X income decline graph acquisitions our value to expense. to fee of XXXX. lines. $X.X fourth details the $X.X in quarter Agency pipeline Including analysis, revenue. and which from million, $XXX,XXX first of our of of non-interest increased amortization, XXXX represented producer, of $X.X investment Insurance million in graph the Mortgage first acquisition intangible The by expected first Insurance the Insurance right increased our million non-interest the rates bottom $X.X income revenues XX, quarter line quarter commission quarter

of be bottom slide. ratio. the as referenced in the we continue The leverage the excess Similar trends contributors capitalized. the change change to of in right ratio. regulatory to ratios, were growth and lower leverage can Moving to the the securities NIM, capital to liquidity in the next Overall, reports our graph details and primary you see, well investment our

I'll Now over turn Drake. to it

Drake Mills

Thanks, Steve.

on lot and a duration competitive Because growth. were benefit the of committed growth. environment, low drive we strategic that can new over Even the at remains building investment benefit long-term double-digit for value. strategy in this to be growth. excited relationships we that have through culture our and loan Worth from quarter. We we that We to We opportunities the in and strategy will strong the about philosophy. focused our teams yield, value bankers and impressive Houston, chase to in this not to is Dallas, benefit proving meaningful trusted to our create who drive our from Origin entire advisor of on year. environment. our the targeted a a of execute and are market from team luxury achieving rising Fort deals on of that the our past sake This rate the expense positioned lift-outs Origin quality having capitalize is our credit is while able have

we Origin East Bank. BTH our partnership and as We meaningful Texas the very the in announcement pleased I'm gives this with across Dallas significantly in and partnership said benefit expansion are Worth. with our where also us in call, believe IXX I through process. strengthens corridor Fort on we And

and for what position closing, being Thank opportunity value execute today. high strong a did East the quarterly the belief communities built and announce continued And shareholders. consistently BTH dividend, opening questions. to on which for increase we're to have we in attractive the to level In in up at a it employees, We an provide call you now that our market. customers, our to Texas our signifies of we incredible add are has

Operator

first [Operator We'll Instructions]. our take from Matt Olney today question with Stephens.

Matt Olney

deposit that love deployment part that's is further some of XQ. throughout are driving Anything seeing peers then, two related liquidity the hear in want deposits? on question the of at growth. updated moderate of Really growth in in We excess plans this I strong lots like numbers point. saw Would first of of deployment seems liquidity. your of It dig kind to about strong Anything more this particularly chunky? growth to the around quarter. deposit And of year.

Drake Mills

have adding dealt the moving have fourth start for I'll a first, in side. nine over their in the was to seven for team deposit that Matt, first off they've relationships us. members on these impact we quarter, recognize years in – quarter, significant people the with productive, been relationships, That extremely

So this is growth. core

growth. the saw core You deposit

deployment. opportunities gas my is giving growth, You was core for me the years only saw it us, is I'm the meaningful. but say foot negatively off you've which for going non-interest in And impactful, heard NIM, us deposit bearing for increase take to never obviously Liquidity not on And deposits. growing strong.

feel feel from a managers in good production these see sticky relationship like about we very production. slowdown and But growth. this this we I is So, – it's obviously,

other and were from few portfolio. we able been And with So, But We the you and get deployment deploy difficult a that pretty that getting busy impact significant months we're saw tax side cash deal in interest of of trying and month. feel things there. we potential of we to of yield. having to with are some that. it's a – cash. that the us SBAs But cash there, that to And like bit some work increases cash to rate is more to to of super what the because in put giving NIM saw last payments of our last aggressive obviously, that investment reduction little of some that using impactful good and have the the

that here deposits. we're – We're And because that to chasing XX(B) it. strategies these we're high reduce off over to very and concern we're I chasing think off for XX(B) their that about that and tax into know instance, and now deposits, at continuing across that going managing project in sitting relationships feel of cost position I so, deposits end a of $X.X deposits, good tell cost our here will the billion good those of seeing you, and we I – bringing we're with big payments, putting very year. some reduction, And because because sitting I how today about higher to able be us cost that a manage there's manage higher position. today, of the

the at also overnight relationships We the year. to be that end of will able have we

work So, that of process. we to internally amount have manage a going on tremendous

So, levers $XXX have we're we million, feel to project are. try going of some cash. a so cash in to better to Today, manage very is number continue XX(B) we we're pull reduce to to I way about a good But position. around this where and

Matt Olney

loan I the gears bank look deposit that in raise go bank's little with guess the few anticipating. and both XXXX you to respect to Fed and for expectations betas, to at love cycle betas aggressively And the lot XXXX. rates back more probably a to with about again can think the rate about bit, you're next meetings, would a we last to have hear sensitivity the switching I

last how hear before So, timeframe I positioning XXXX cycle. Fed to view maybe back higher to XXXX, that would rates compared rates the you love to the bank's in today raised

Drake Mills

going the to grasp on understanding index tremendous have. to the think what amount were deposit of done total of wanted a betas, was because the deposit percentage – deposits really a work impact I has get in on Steve that and we

And we've are for So, these years had relationships meaningful. number a of are that that X% indexed. of are our deposits

it came number I in that thought than more So would. favorably

yields these We're midpoint we'll that seeing quarter which betas this going to on increases XX% obviously, from low deposit each a as able start suspect but range to be will at higher, are loans in on on of in sensitive XX% that we four betas see that being the And that's that markets. us side. I projecting that our we, are, the going being to point, second of up handles that's our deals, on are into as probably offset we're We favorable. the standpoint feel to help what new the pick range. start of on basing because, the on loan side little So in to one

our So, I good for loan through Steve, loan a we're bottom the certainly betas basis with you've next if betas, and that the XX impact think points don't XX points. point have know floors, or had Steve. so ahead, basis raise full basically the whether but a on feel going next Go XX overall, we're it's at we – all we'll basis depending of or

Stephen Brolly

that Matt, is basis of just said XX% total increase. a when after beta, XX% Drake XXX to points

So, we lag. have a do

expecting we're this close So, XX%. for quarter, not to anything

first As to deposits, our can to as we going beta. able said keep X% we as that. we last for were to we quarter, that other be lag a to do but much of basis XXX we're points, really to going we XX% can't And X% think the the

be June, not basis until that's beta, but you And able may if cumulative However, XX% total another July, that's that's – there's then. after be may to May, XX. you points, XX when able the see see when

Matt Olney

would you mentioned a guesses XXXX index currently. X% of few years what back that Any compare on Just estimates just ago in following this that to point, timeframe? deposits up or

Drake Mills

manage we rates used relationships think, those short because down. of went probably X% somewhat XXXX, they in of that as to recent we've I were

on go versus probably I'll X% – little potentially X% the would in going I at we this. were and to to range back is we that do a this say are But X% where I'm So, Matt, a work today. guess. say

Operator

question Instructions]. Kevin We'll D.A. Fitzsimmons Davidson. [Operator from take our with next

Kevin Fitzsimmons

a on the Just question hiring, pace of Drake.

that mergers you've first adding nine weigh when on bit And taking their foot show BTH hiring have quarter their at and – to producers on the and wondering come and off large maybe how on your being the board. foot like them in you coming Just fourth weigh on seven line than you or of curious mentioned going that that ongoing movement you a curious. gone come, you and the on in taking you others? more not to off top or to hire the we've times of how got I'm time, now the but through just not? you this I'm just just Do kind gas, So, opportunity or the the versus you members with in through quarter the there's are how that on progress the maybe same some of core around had, footprint. allow able gas all do get in to profitability. results opportunities sometimes when uncertain – take the

Drake Mills

we managed what this how this is this institution on, and this. strategy Kevin, we've built

portfolio Obviously, on the the comes Now, to our opportunity But opportunities strategy our in the market dislocation significant in seeing is for maintain forms. us. different we're that some the providing other and activity mix. is side,

So, XX bring is, estate let's what we that say, on, producers. means real can't

seeing opportunity are producers. we is continue do to that. focus very to We C&I our We what I happen will add have to good think a and

real is think quarter, as estate production flat occupied, which instance, though looked was our you XX% C&I. even almost categorized of this For should past be owner C&I that and

of C&I we growth of in So, type reality, had because putting were relationship strong on. people the

passed what last giant I of those a producers would So, estate were, real deals. on the they couple quarters, time we in three killers because have on, big of say, type

potential But we're the to this build it going have markets. we're opportunity, our that's now lenders advantage take continue world, to presence to the organization. we opportunity of know that. we will to right how continue of don't opportunity build I have do because that in C&I So, going this we continue as the through because these to

Kevin Fitzsimmons

ask to wanted Just about warehouse.

to the in think earlier in the to X% XX% XXXX. call of I that outlook heard warehouse, So, about I the loans keeping for

today. XX% I think it's at

room but a does the imply in getting go a to So, of we we're terms close more to then little volume, bottom? have that might down

Drake Mills

warehouse several and of the that been at mortgage remind right-sizing I'll things because everyone Well, that of activity for a project number the did. months the the has we last bulge lines

mortgage to say – outlook point. concerned run inventory, reason can a that's And plan historically, and fourth we we mark, have that, we the we this I'm And in at keep XX% But fourth range. the In traditionally number mortgage even in but I lift. but the than what would able that is those that in around that for slightly quarter we stand where $XXX Our maybe that feel of to somewhere impact I get inventory, that have QX significant about seeing think because QX million lack fill lower we maybe X% where mortgage to feel to difficult warehouse. of today. like and projections is, a based quarter. I are. QX production, where applications $XXX extremely of a minus plus saying about is good out of And team, though million that little we're coming that's we'll they're be to or QX QX, the warehouse, we negative on that's

Kevin Fitzsimmons

avoid credit. credit, very out appear you've years, is or proactive think you've in healthy selection Drake, few moving this telling And, trends backing have sectors and direction especially very it. had One and over at kind the I look to to of when and too. the past the that solid last which appear me on way terms like, us the for very forward of, process you guys looking wanted you right reserve, been one client they're in PPP, to right the a warehouse all you're In

how now. wondering one So right you're I'm feeling hand, On is credit great.

the this guys concern things just the about hand, earlier. you other mentioned the On there's given increased economy,

feeling there's just if types loans specific avoiding? So, you'd or wondering any and be how areas of you're I'm generally

Drake Mills

like in And plan, points And you years. productivity, weeks, credit around look institution I'll Kevin, amount process? It's might negative to work of where because Where think of to to been our you told you doing where mic-ed tremendous going XXXX I cycle. couple are we've a back have easy the a year loss run we understanding. today we're basis are team, of that room per to holes? this go this you average different last of when at understand manage certainly the things, saw of the had When with the number and good. with that recession, and Fed, I've start a times as do decline what aggressiveness of really a an production because potential XXXX you not when do strong XX we during XXXX, those do an

with what a those gifts dives saw still I deep look management standpoint that, wanted And will chase very in. with for of that living, does the we that XXXX we we had I of XXXX, so concerned We've have and say office. environments reduce is retail, that people and this for is that, identifying remain we impact that Moore areas how recently slows around spending we risk they're through significant office. as continue we we of significant conversations portfolio? worked in they will our areas decline, how on have look We've are we're in team know assisted And So, and I consumer Jim that from instance, other and doing XXXX aren't that retail to concerned number those office. today we with Crotwell and when an this and and Preston will instance. pandemic continue leaving areas, as to have around at had to doing the different when of some at type off. area diligently things great closely hotels reduce some a

those looking good metrics and we're our are profile ever been, our So, at growth, even credit good, than see is it's are. things concerns though we exactly better where

here to of at the X% and is and I real So, that worst our the for and are where that last to of X% concentrations aspects look sit understand and it two case that worked a portfolio. in list meaningful of are. portfolio exactly detailed – of And industries have those works instance, weeks the C&I, in that our how the concentrations know

be strength very to understand issues though portfolio. do able to that good it type work feel – we about I there's the So, know and even coming, this of still that of

what I'm So, Lance. on being ahead, bullish accomplish. Go still able we're to

Lance Hall

Lance. is quality, go lift-out back question, the I and want for about you this is Kevin, the about asked it is about just much production. to credit lift-out – actually strategy talk us, as when

plus not new us, for have don't production of like the reach markets luxury as continue against the be to call, having much dynamic may loan to we with about, cold knowledgeable in, felt to we're into experienced to opportunities we bring to ability So others. bid over have we individuals, that the

production We have dragging term insight. and history with that these RMs, relationships tremendous us which gives managers over long are

So, the high make going strategy fit our culture, they our to individuals is quality these production from us, a front to end credit to what we sure they're vetting quality, make want fit that that portfolios the over the perspective. for strategy around of be on bringing

strategic So, yes, and also but you you to about it's the credit. heavily go talk plan it's back about lift-outs, production,

Kevin Fitzsimmons

point. make. moving lower to a than can a Yeah, that's new you great to Lance, that's a great be loan over a risk A loan one point.

Operator

[Operator Instructions].

to with return we'll question, Stephens. next Olney our Matt For

Matt Olney

in growth On really insurance quarter. first some nice the the side,

insurance could higher from a the XQ. commissions, to that few I higher chunk was trying But where quarters. whether there's anything just think that you in closed the of curious acquisitions over driving contingent revenue be appreciate number, you just disclosed else that next renewals, if that insurance it's

Drake Mills

with growth point and growth. sharing losses. and this income because – client is of at profit stool three-legged a outlook market Contingent it's strong Matt,

premium. seeing slight good market tick commission very there. position in some in – is we're levels. seen on the And, So, obviously, a certainly, hard we're We've increase

that at going at to revenue in we're today thinking So insurance was $XX million here that's and it. around the sitting we're beginning $XX of driving year outlook. what's million revenue, probably Where sitting produce the

So feeling very good about that.

opportunities through acquisitions those for to and Looking active enhance revenues footprint still remaining there.

Matt Olney

guess starting on point the XQ Origin switching run far I side. as to Steve, as you us gears point where the rate? expense for would a

Stephen Brolly

$XX quarters. quarter, Matt, about million as last for three expect we said we next the

this under run a the So, will a have we're next million quarters slightly that that feel And approximately we rate. few $XX quarter.

Matt Olney

other any would on announcements, any see first the I on together. how since love we that quarter updates you their hear coming BTH, or spoke guess, updates deal on to last

Drake Mills

process I comments, As with the through. going tickled my I said, integration am we're

with and been and this continues I how so the been selection partnership I to how and of outlook and lessons and we're surprise, real client the up tell amazing, those getting think, impressive. about perspective, growth them their you of about and when opportunity But regulators more that really has of have are but some to these they how to the we they And joked manage a been they and that what I'm think being people you, know about a the we people – just quality them from they they risk and has getting but truly surprise tickled dealing number with one And people little make me unicorn, we of how on do they feel. have of we this a this things feel and some take of things. am think efficiency, I good One the I aspects and this from see is say tell to how tickled this I rewarding. regulatory able our pick bit know with a to shouldn't where are. they if when just need can do

obviously, know, Derek McGee and going So, a find as you we what number in. hired a for. been of And, that's positive things

more we've So, process that and made certainly efficient enjoyable. more

us. our up are we to tickled a I'm regulatory need for and going are are to a putting down and do with with just little know to we the the we're that's we BTH. to bit, opportunity think very a has going integration I of road. going set, approval feel excited. outside But conversion So, where been have they make continue that things date like get And successful process, we this him the integration I great process. get this

Matt Olney

curious how of some lift-out then, you're side, the from leverage. these members, guess I that we recruiting quarter newer Or and you're guess, some the to our or about strategy, from. these quarter of And on And members and from operating the and already from members where last kind I over specific you've if thinking efforts Texas the disclosed those that from team are of I'm some curious institutions? have have of team I'm been deals some closed this are four and coming not so. new Texas year of been benefiting announced M&A are broad that or disruption? successful larger just last them see the really directly in in more three of team

Lance Hall

and one QX us Mississippi concentrated culture loan little get two us. I been for three think kind a in about excited teams. this in Houston. couple one really we in of spread and That say, larger a And mortgage out few I grow sort to Houston. have people have it's of in year, We're a in Oxford, Frisco, others. larger more would keep are as we BBVA understand strong more has around year, ones then, working to to officers. one it Dallas, twos opportunity and And of versus our and strategy last better. coming we Those was

the watching closely. disruption obviously, of mindful and So, we're we're it

We have of who talent we of want go to who want understanding in and to attract our after. a strategic board markets we actively

This spread out. would it say, quarter, was I

Matt Olney

like is PPP, from If in of yields. it the question there last Just me that back out sitting kind are loan I X% core core quarter this yields the improved low looks range. loan and around

X loans on Drake, mentioned low some comments, think I expectations have of maybe as a your handle newer for in you well. to opening them the

commentary how if Just and clarify any. pressure this curious much just as any general and that you're want on point, loan at as seeing yield far to overall expectations

Drake Mills

to think, up anyone Steve Matt, there's pressure the passed We months. answer last don't let But, of in I yields. I past six on – this want and couple not question. – going Lance deals mislead I'm loan to say

Lance Hall

Yeah.

Drake Mills

significant were That rate issues.

So, duration said weren't do and and comments, duration rate going we And of have right as my at deals expense the to I quality. a been opening problem. in

Lance Hall

on surprised committee, honestly loan seeing seeing you I'm we're we're come through tell we're in just that the now. putting right competition books, duration what what the I'll anecdotally Matt, from at the and rates

lift-out in have I a doing mistake our some And of are fixed luxury have Dallas on and We We things that market have of production that's don't competitors We Houston we the we mistakes. passee low making. teams still walk. and X to are We're of like that those the Xs. long-term the lot of teams, get a adding feel think just seeing XX-year the just opportunities. the trapped let multiple competition in

being so, we're And mindful.

to our could grew we're to we on think it annualized, more we pricing guns though even stick right that. what than lot So, been a long-term But around going duration. have decisions XX.X% are and

Drake Mills

might want talk go about and you to Steve, ahead loan yields.

Stephen Brolly

things, Two Matt.

quarter in increased our XX, remember, of you end and contracts anything If most we March of on first so that XX points. basis wouldn't the month, but Fed are the the have of

quarter. basis So, full that expect we XX in points the second

If is this coupons, anything you fees just at the not look the or else.

last the for QX; coupons in X.XX%, X.XX% past and Our X.XX%, then quarter, X.XX%. quarters, QX; overall, QX; four this

normalized come the be you only down are – and So left better PPP see million $XX to more Once had, has definitely coupons level. loans. a we'll that warehouse our increasing. of like, goes, that We

continue So, see I think you're going those to increase. rates to

Lance Hall

when QX of comes at when and last Really maybe XXXX. it lift-outs XXXX excited QX And to sort overarching production. this versus looked comment. Matt, of I of is

production ago. credits income this line from put that'd – relationships a fees be swaps XX%. was these And and letter on that quarter and over continuing of quality quarter compared to simply to are loans, loan a And was XX% quality up period. fee up based – new year bankers. is Our Loan management XX% treasury that up

And the side, pleased. so, on production extremely I'm

Matt Olney

on quarter. the Congrats

Operator

time. like the be call to back I over no There Mr. appear to questions for turn at now Mills? remarks. would further this closing

Drake Mills

to am of you really focused on Thank point. are we because make this what proud Yes, for we being of thank so team I one each this you. want do. online. I

As we're knitting. our our sticking says, Risk Chief Officer to

staying quality, true sound are have focus deals. paying and very pricing, it focused We passing unwavering relationships, on on just We off. duration, on structure is underwriting this and

annualized we growth, you look is long when haul. at going and to we that growth the that So, think feel is sustainable in be growth XX.X% profitable is that

in So, seeing thank your partnership your you today. listening for for forward you to investment you future. Thank look we the and and

Operator

today's conclude you does for your teleconference. This We thank again participation.

this and time a You have disconnect your may day. lines at great

Origin Bancorp (OBK) 2 May 222022 Q1 Earnings call transcript