OBNK - Earnings call transcript Q2 2022

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Operator

Good morning, ladies and gentlemen, and welcome to the Origin Bancorp, Inc.

Second Quarter 2022 Earnings Conference Call. All lines have been placed on a listen-only mode and the floor will be opened for questions and comments following the presentation. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Chris Reigelman, Head of Investor Relations. ahead. go Please

Chris Reigelman

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

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

Drake Mills

to start executing our plan Origin morning. of Good our living strategic vision thanking had another I impressive by Chris. and every want quarter, They Thanks, incredible our this do performance employees. on job an day. out and

will continue while building culture relationships, to to this focus. committed and are our We be our valued

The unwavering our and and to customers, our and second strong. growth points shareholders. success the and serving Our for were their quarter loyalty communities employees always results back

from out bankers. our We as quarter, $XX.X of Our lifting about the per our a income increased up to high-quality talk strategy banking well $X.XX, diluted and as million. quarter-over-quarter net previous lot share were earnings relationship

growth on PPP loan $XXX.X reflection loans linked compared for of executing billion investment, Our a warehouse XX% or million excluding which increase a was annualized and $X Total direct strategy. quarter. for that the to were the a quarter held is

continue We proud Origin with quarter. but understanding I'm pleased to net make Crotwell, positioned On certainly growth they our and equally in added, for dues, impressive margin have and the stronger. seeing proud growth we Jim non-performing loan the deeper loan I'm you will the was that for a of This environment, as are we in we rising classified you previously, Moore out the for Slide to do the Jim a we a our think rate have you'll showed play is from is interest basis out increase quality XX the and both the want in quarter, through well last the lift-outs. we discussed but to relationships and our through organically quarter. X.XX% our over I'm Preston growth, point so credit that about gain charge-offs, their X, our to experienced loans that of market. quarter. as strong all speaks as Texas and I teams reduction numbers, of metrics walk see a company impressive past point

is of This Texas it's array wide loans to understand I story, of markets. XX% represents now important franchise held we important have and investment, Origin's to Texas think the for in Our excluding opportunities warehouse. our the

developing started being serving transaction, all customers are the close of approvals have the pleasure and to our the shared to This BTH about excited have these and in markets. of commitment at for regulatory relationships shareholder quarter, dynamic. has on East and great Fort built we have with Texas, that We third opportunity quarter. Dallas Worth the the are and past BTH. the of the received beginning partnership we impressive, team had also culture is I've with we and pace every and in both in that The location companies BTH is

We have teams specifics the this we're from BTH gained get Steve lending enhance means what commitments well throughout the the partnership the Lance, Jim about opportunities and to Lance? quarter. excited will commercial about and markets, as value. as into long-term

Lance Hall

very Thanks, are at point year. the the where with we Drake. pleased I'm halfway of

have our isn't we I'm The and and plan. results, that followed way of the throughout growth While team on our more so I'm executed our XXXX proud accidental. has strategic our process of seen and the proud vision

As strategically our best-in-class management award-winning plan, model bankers and geographic our teams. and culture we banking attract our per continue leverage to to

is that belief creates as credit into Origin create we perspective growth their bankers' of well This provides can the because opportunities as without compromising deep relationships. lift-out an credit. growth where consistently Our our insight strategy environment appropriate long-time

saw which we is quarter $XXX of loan management growth Quarter-over-quarter, half PPP second by like which all growth $XXX $XXX million. loan throughout second of time mix over the or We profitability. year. our impressive backing clients, to approximately On our X%. XX, of same from $XXX due more as loan In to trusted nice Slide excluding our we grew had and have our leads throughout to services, you and came portfolio. pride the year. compared We advisers Drake Louisiana the loans Texas, the also of growth our markets enhance into we PPP in we to warehouse, XXXX, grown the we believe ourselves throughout really deposits, We other Mississippi. move on last warehouse compared ways can portfolio, and see C&I our As and portfolio market million one measure noninterest-bearing million C&I growth that to in to out which being the last mentioned, and million and treasury meaningful

trends Moving on to deposit Slide XX.

get factors: average decision strategic year. of of in with We to well our deposits of how but some as the we the XX% did the pricing from half based detail through I'm deposits the deposit this decrease of our very can related last and relationships. the meaningful of past on ability an will into represent with quarter-to-quarter our the the over the Total second trends part very on confident now $XXX overview to to second compared NIBs million high-priced market pleased in deposits. proud index but second increased able approximately with quarter. drive funds, deposit quarter, You cost almost year. noninterest-bearing year, We've our deposits. to in see which of of average average I'm deposits, first, hold total larger two more of our quarter can lumpy as of $XXX timing for performance growth Steve be are million was feel to

four attracting total of producers, right past for will new in the meaningful team to We bringing strategy, existing seven drive to continue strategy Our deposit seasoned believe our bankers team and to core of the added our markets this coupled our the this XX. We continued quarter. quarters bankers growth. past with loan

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

Jim Crotwell

Thanks, Lance.

the net improvement investment PPP of reduction Pass-through at on performance the extremely in of of can Slide strong year. for total quarter. for you pleased loans loans as the quarter from loan loans ended credit the report XX metrics see March and portfolio X.XX%, this all our X.XX% are held for to of investment a of to our we XX, As held

net a During PPP, held of X.XX% for QX compared loans decreased quarter, from levels million, total investments of and XXXX. of held the X.XX% QX investment, for loans classified $XX.X a XX% XXXX of to level reduction represented as

pleased report the XX.X% for quarter X.XX% or for also X.XX% of held prior of down a million to for are coming net in PPP, reduction loans from held a for investment quarter. the in nonperforming to loans $X.X We at total level investment,

at net Lastly, annualized the QX for X.XX%, for held investment loans to down X.XX% XXXX. average quarter for in from charge-offs came

on continued focus along with the our relationship loan sound behind drivers Our portfolio. are underwriting credit and structure performance of the solid banking,

strong quarter, spoke allowance we loan credit prior the for $XX.X earlier. quarter $XXX,XXX a Lance our that growth increase our from to losses increased to the to For support million,

As from X.XX% warehouse of previously. and reserve the investment credit held for percentage metrics of loans was represented of reserve PPP The a for and X/XX/XXXX, X.XX% discussed X.XX%, in respectively. reducing mortgage on of held driven continued by X.XX% loans of basis decrease investment improving loans levels and our net the

labor While to and uncertainty the inflation in there continue and exists the potential supply portfolio, geopolitical on recession concerns their disruptions wages, as we resiliency on chain economic our supply, impact experience the portfolio. the of our impact pressures performance as continued of an well as and for to

we serve Based recession. a will if markets overall than other country lesser upon degree all, recession to do to areas agree and serve reflect Steve. currently for as country the and we lower by However, be turn over impacted outlook with Moody's our experience pleased reported performance the that areas portfolio. Analytics. we than the the customers, with are a markets All we impact our now I'll and it dynamic the feel of other many we levels of conversations potential in of are

Steve Brolly

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

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

indexes. the a our impact, quarterly XX which XX% of basis of points for and investment loan LIBOR in loans increased this represents held yield Excluding on QX Prime average on beta

last increase XXX As to point we on for we non-indexed basis all rates. first quarter, intended impact of mentioned products minimum a have the deposit

deposit For X of increased representing past a X% this only deposits cost basis total quarter, our points beta.

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

asset-sensitive Origin. bank, an increased beneficial will be As interest rates for

$XX.X floor of recent Slide indexed shows or March generate right trend a their current interest affected expect income trends. interest billion these NIM their loans shows XXX% X-month rate our their point interest in income. from beta parallel the or or a above Increased have The XX, X% At total basis a graph $X.X at above Prime We of XX% loans and rates. shows were rate. increases. on only rate our The NIM interest rate in loans interest left interest a interest of net and net and shift at above Therefore, or these to X-quarter at loans floors. XX graph or have to million at XX, floors. XX% over our LIBOR bottom June incremental XXX income an

quarter. Our million the and higher income $X.X million total increase. during increase loan were million $X.X interest loan increased higher $X.X investment largest contributor higher volumes, yields, million net increase, yields, The $X

increase The excess this shows loans, to due was XX $XX.X by trend and increase reducing graph $XX.X from details increasing left Investment and warehouse. Drake basis earlier, net last cash yield. quarter, of the the warehouse quarter-over-quarter. due our contributor our balances. from mortgage to PPP XX to net point largest balances and The interest a X-quarter excluding growth our Security for and average increased average liquidity NIM, XX.X% PPP XX interest investment, X.XX% balances bottom increase in periods million Excluding The in basis putting The margin slide. is the was loan or graph work Slide mentioned income excess during our quarter. million balance to liquidity points to presented. is a top mortgage

were During purchases in left is investment our this accumulated X-quarter trend past quarter, The graph bottom April. month income the comprehensive a vast other or the of AOCI. majority of the of made

sale through of quarter, the future unrealized intend with for the of values fair end growth, sell change loss do during on securities second net to an yield in to loss. our not reported tax fund curve the securities the in unrealized any we loan As To the steepen available AOCI. continued effect was short the

living million the Slide cash our In over grow graph first expected proven revenue our growth million top available The second of expense increases impact addition million the $X.X increase total lines. in quarter the net the approximately XX hired is increase left continue graph noninterest increase the XX, on from primarily and of and XX drive revenue of The full net driven distribution. $X our fee from quarter, from cost addition million shows salaries employees is March employee The rates benefits the additional in revenue ability deposit was X. pipeline since Mortgage of our details and banking that flows XXXX, income. expense $XX securities, commission bottom agency quarter. quarter in noninterest value liquidity acquisitions billion $X.X partnership funding in analysis, an MSR. $XX.X volatility by the to The in interest quarter. BTH closed of and have of of and our represents from decreased to we reported first the of our of market year-over-year driven base to these during million, the the quarter IPO. effective available over noninterest December revenues the The income million. increased that new $XX.X annual by X.X% $XXX were our net a Slide insurance we raises fair third a

In transaction second compared first addition, merger expense quarter there of $XXX,XXX to the quarter. in $XXX,XXX were the in

a graph, as On show as efficiency we X-quarter adjusted the top efficiency ratio right well our of trend ratio. our

a As ratio. slide, mortgage detailed expenses related calculate the adjusted later exclude in income and we the and efficiency insurance to

our contributor on cash leverage the as was excess reducing details bottom to leverage we be ratio. regulatory higher our right Moving of to ratios change graph the liquidity trends continue reports ratio. well primary the Similar the slide. to capitalized. putting by a work next We capital balances of show change our to of NIM, to The

to Now back I'll turn over Drake. it

Drake Mills

Steve. Thanks,

committed that Origin's We strategy on and to have and history navigate allowed successfully that is have successful. main be we on our executing relationships of people proven us to the factors focus economic can our throughout are cycles. one

our adding right by a the We company Origin's future. finding deep shared commitment to to have and ways to vision are continually strengthen people

opportunities we arise. grow company, As additional roles, this strategically and expand

on and to We team and This in are adding Brolly full will Steve his Accounting as opportunities. Wally Financial and finance energy way Chief partnership positions Steve powerful and time Wallace Wally in to between accounting Officer. devote the Origin a capitalize Chief future Officer

and team. are within not our Jim Myself and Officer, our finance I Credit teams. credit, have Steve by results. Officer; Moore, a Crotwell, working like and Banking proven Lance and accounting believe that is Hall risk Wally our together executive and new do Risk example. this our great Preston with that partnerships amazing in can and we the Chief Chief wholeheartedly will produce same So

It's Texas we throes of we Look, presents I to economic entered meltdown. We prospects to countless. this Dallas earlier, ecstatic when this most years, in we we first with for fuel got was about our growth at are mentioned the I the country BTH today. being three approach where our As the opportunity where after banking. – paid relationship-based about remember The market in are week I are partnership. XXXX, off in talking an as that is look finally to every tremendously

position. employees, for do will in this that creating continue will in is for We done call what bullish on invest communities on you will markets for what to I'm people today. and organization. the in Origin drive long-term we've strong and shareholders. our we a customers, Thank value being and to continue value

Now open line the up questions. we'll for

Operator

ahead. floor comes [Operator and from And Ladies questions. Olney now you. Matt for gentlemen, Stephens. question Instructions] open Thank the our Please go first from is

Matt Olney

thanks. Hi, morning, Good everybody.

Lance Hall

Good Matt. morning,

Matt Olney

shaping pipelines hear and more up to and want levels the commentary to XQ. robust start XQ so and loan about I expectations are are? year back Hi. how love of Would the half with growth, even in the in what

Lance Hall

multiple doing? double-digit grow our hi. This think and we've I we've our serve. executing morning, markets Matt. to plan on proven is click. you as it that just at are bullish been well Good years, as opportunity we the to is a ability on strategy of it's And lift-out Like our incredibly How Lance. the do Yes, that

as we there think it for would like really at extraordinary back feels quarter at the the XX%, So that year seemed banks. gotten of into year, loan the a of the be look the lot growth XX% – growth the pushed half thought talked all of when you was I banks, of maybe of we in beginning kind like we the some

million when counting for and here we love $XXX in and of to was. focus. we been thinking strategy not development was mix the last continues that probably I we're in is this about support the the a QX continuing We on love growth we've Mississippi. organization, a combination the funding doing that the about sit Understanding C&I funding PPP making officers, making a perspective QX, want or it. And talk sure employees later this it It's business million $XXX too. of deposit another us, our Ours, able in I experienced well kind of credit and really appropriate love roll. of about deposit $XXX Louisiana DFW, have we loan that also lift-out XX months, how a where very that $XXX in specialists. sure talk that still people as warehouse. as to from pipeline I work hires the take pay strong engine million growth bring spread have in we're to are we loan this to It and dividends, mix million company, nice forecast, we'll bankers, over as nice the Houston, of focused the in on but side

So going incredibly optimistic – our with about this. we're where

Matt Olney

Okay. that are and Thanks I important deposits the topic Lance, you're guess other right, then here. for

purely funding third consider for you XQ. quarter back the to year. half for growth? half growth on quarter? mean, trying the some deposit the you of back plan plan fourth of kind expect more Just do bank? a some want broadly, just think Are think mentioned half dig any the captured year. what's moving that I this. to growth all on the guess more deposits you utilized meaningful and of looks you there I more funding incrementally appreciate in of index Would just the of in it borrowings deposit back year? you that XQ? the Or it And that I in out the are Is you in I the the like

Lance Hall

to little from them as probably it it as out liquidity of well. we will can I'll BTH access some plans Drake wouldn't of speak pushing take other and bit I this and our see us affects to how And any deposits. a Yes.

us, were we wanted we think of flip the the understand for buildup we at to how with had, I that where of earning cash assets. really kind into QX end to

So maybe Matt, of do sort issue ability Texas-only North of the to Louisiana a organization as versus in knowing grow the deposits strength of the that bank. you us. sort for a of us timing as well was this benefit just is

So we're like. talks about as as which it, I like always Texas Drake plus

time see points had and So us you'll deposit in side. think that the on XXX we margin understood much first I aggressive opportunity really of rate hike. more the an enhance get We to

took that of nice I way. advantage think a in we

I positioned perspective. think we're still well liquidity a from

a I do think see that us you'll nice job.

think I for all a deposit the challenge it's to on going be banks side.

As a you all customers aggressive some very mean in on a off and as companies see, we that brokerage that the use we pay challenge, well funding seeing rate rates but be companies noninterest-bearing environment. we're company to will insurance by structure you're I think getting I sure debt it rising get our when be winner positioned way correct. to to making this comes a that

Drake Mills

Lance's think Matt, deploy this able some deposits. as take is Drake. for it about opportunity was to aspect that are expensive that, and advantage be knew a what NIM that. opportunity our was an would very enhance mark we the it strategic to close To cash. We add to still going – us But to that I did be comments, mean, reduce really did and borrowing market have borrowings to available. to we an we to when we opportunity to were. have BTH's you But that Those were is investment portfolio talk I other

forward. position, and in for allowed my impact really a to that it is temporary us NIM moving the So quarter mind but

Matt Olney

and it step the taking helpful, guess obviously, good the there And Thanks the NII and tailwinds just and the like rates. fourth sheet guess XQ in some numbers That's both with respect on more just feels balance I in to quarter Drake. for really as the in Okay. NIM that. in well. growth, BTH a layer And I higher there's third you back,

things how back things the the be should thinking NII, mix year Any those of these we of of commentary about as As you you margin all the about kind together? together. the half kind all blend or

Drake Mills

we their then Yes. believe me off, been look I talk BTH, and performance the $XX like And a and so it at from done I'm thought their think perspective. has without where far, would improvement with you they and when They've what going NIM is, BTH an let year $XX.X million. give 'XX, overall really for you a about from look But good. first they full – I Credit today. first and I to quality growth look million half of XXXX, And are been and the pleased at very through has net be BTH standpoint, think at BTH will NII where been I've was then unbelievable they're phenomenal. job income

So million, income, we $XX end think the when our the bring. I'm for to what and in, rates the But through very good million it's on I interest third look pleased a looking the net expect say, I'm interest range progress in to to of NIM, us, pipeline is $XX very going think, that range impact they're mid-X% at be it's I quarter. the let's making. be with addition of at what we going going

Matt Olney

this with of we week? to That's for gave Drake. move capture And those BTH, got numbers you helpful, clarify, the rate, obviously but Okay. rate ex kind are those just

Drake Mills

Absolutely.

Matt Olney

it. Got

Okay.

questions. Okay, guys. queue. my back you're hop will I I taking appreciate in the

Drake Mills

Thank you.

Operator

question And go next Davidson. our ahead. from from D.A. Fitzsimmons you. comes Please Thank Kevin

Kevin Fitzsimmons

good everyone. Hi, morning,

Drake Mills

Good morning, are you Kevin. doing? How

Kevin Fitzsimmons

hope doing Good, are good. all well. I you

not that much terms Or coming look you something in of the out whether going added. curious producers know it's out you just officers strategy inbounds a you have think for, interested Just it lift-out opportunity from seeing for there think so that's in Thanks. – as you competitors what and over I the next about quarters, you're always be detailed been but about of loan and you is in wondering something all in? you new your – comments bigger I'm the is look to terms few you?

Drake Mills

Yes.

But seeing going though some primarily just in advantage we're Texas, that of. to took opportunities we dislocation in it's dislocation. the I'm markets, Mississippi the primarily talk even significant With and

we're bunch portfolios people. fit with just to because We are time in new our taking fit got trying to ramp up to portfolios. of They've have not a our – their

are pick this But we had years several seen ago is strategy – some deposit they up is something Dallas team in a we quarter deployed that opportunity been through about some C&I Preston And and this is private opportunities fund We banking of in specialists. in Houston. an specialists this even his interesting the focused. Carmen what's we've and past to with showed that then the and Moore deposit think could Jordan us themselves I they had. And

So we've up, focused we're activity pick that. on seeing that and been

So what hires specialists. quarter great timing about of new for last were got us. X/X deposit We've the this

passing and So the because quarter. we're to opportunity third on what company, and we going real do mix, not but see might our a table. lot to works going the see bring That's I estate fourth of that we're stay that some focused in they opportunity on again, continuing, this for but

Kevin Fitzsimmons

as strong Drake. I your to hold it that better. credit, credit up will your Okay. very probably Maybe comments that Thanks, and remains goes understand footprint

provisioning Thanks. Just curious the do how Can get clarity grind relative the that where pretty Or of down lower? going? see think to ratio you will you stable about it growth, should environment? you that until ACL we still loan stay pace on more think

Drake Mills

are our any to going to look weather In that good continue comfortable make potential because you well. to when recessionary holds that you at footprint from all do puts for as push much sure in extremely and we numbers are conservative. even the recent can tell weather then about that your a analytics looking Yes. And the things super think and we service storm. position that we Where have showed storm. what publication And our basket, thanks can you you, you're with and ensure they we eggs a in thinking made am very we to – we are I up as period, one a to going methodology that I'll

something credit see extremely to but other question a doing because your is flat I've The significant I pristine. that's we're is him to focused we best in ensuring loan career. just And seen on good. that I slightly for So quality would stay continues are reserve, our temporary. not think my say credit increasing what is, than that Everything growth our just to nothing just metrics

Kevin Fitzsimmons

of with Drake, I'm back year happy And you past took I you're sure you're for the now proactive client so, at potential steps that some you or you looking I'm the did slowing selection. all And yes. sure Thanks, out recall down. describing looking the over when things

Drake Mills

you in tell you, heard Moore The because my accelerated Preston giving the I'll Jim it but Crotwell market Well, yes, strong. comments and opening credit, and it's just and XXXX. started And in pandemic not continues. is that it

basis just And what's to the – so of fit, great – putting what see us not We a credit that our the doing that are moving get that what we're confident credit dues, we're metrics doesn't that credit indication XX we right gives very are are but past a that am problems. that's I necessary. good, of it any the I forward. indicator good of doing the points books, only things don't If we out that's new here. And on would in come. you, And tell things.

Kevin Fitzsimmons

Okay, great. Thanks very much everyone.

Drake Mills

Kevin. you, Thank

Operator

And you. next our Thank comes ahead. question Lay Woody from Please go from KBW.

Wood Lay

Hi. Good morning.

Drake Mills

Woody, morning. good

Wood Lay

a maybe impressive. hit time. more so quarter-over-quarter in of mean lot I the the credit to really metrics just improvement one Yes, was

improvement? any that on what drove Just color

Drake Mills

and ability job Yes. he I does exceptional. manage and the Jim, when is you I Crotwell that tell this his here Jim and to this I feel like is dominate

I'm him So color to Jim? around to ask going that give question. I appreciate it.

Jim Crotwell

assets of sold paid most significant the combination in some a that either or of they business. hard in work a the that over – companies to that fruition would were successful, ultimately had through of actually were second it's Good component components We've off. lot say of of we that morning, amount several and came guess, moved that I classified and were Woody. categories impressive, is sold a had payments I quarter. quarters refinanced their us The they

fortunate, back and so able the also, line, pleased the And and them we've And were to we're like said, these across overall we've been of on quarter. focused work with if very said, relationship fruition get fortunate very, very, to So to be good We'll we not that said, very seeing you what I targeting towards to client field. many down move as been really and will, able out to so towards, those what to we've been we've I we focus work we've finish asset think selection are Drake on it as to been of to, that. banking And working as continue Drake credit and profile. or goes quality. talked as get about

Wood Lay

all it. is expected growth the back the strong half front, then And great. Got growth That it to year. sounds remain of in the like sounds loan on

think relatively the does Just it Is at – mix, impacted we as in the get how unchanged? we term? BTH it all? it profile BTH Or should about growth is longer

Drake Mills

No.

took the think we're some in incredible to I significant to going the we loans, been I I've fourth third exist, those to meaningful growth why see million think allow am impacts Texas got improvement provide in believe front-loaded say resources grow. to spent BTH in of see growth economy you'll X% do I BTH time in it, some and offices, this them say continue quarter. But Texas but second but in relationship to But opportunities the as we $XXX probably that East opportunities and advantage quarter, annually in opportunities lenders, because we're to quarter. of I've on bullish they time in we some just them the have, with to in so it organization East quarter, growth their and drive as I – that got the this I XX% East third I And additional try time Texas. all and into significant managers, to mean going see was to it's this. some – spent – give in we the

fit draw it you up fit, fit, deal. if we up and good financial on waited, just is We stay this drew the for to on deals cultural deal, you But sideline. and us. we If perfect footprint fit, BTH perfect we till the geographic deal, is the crazy passed perfect waited the had

when they unicorn. living are so the to unicorn, the mentioned we as truly And we announced up

So addition going be us. they're say we growth very a we're in in will like feel But significant for I a that to shape. good

Wood Lay

That's threshold last plans by for great hear. And I'm in still changes quick, to billion just year-end. to asset real me, then stay under assuming $XX the there? the Any

Drake Mills

and strong organic we No. levers But today. I actually, we to our – sit we that are good monthly, we look continue while feel remix mean continuing see down and where pull, growth. have to sheet balance I our we about and multiple our position and – big didn't some of some funding reasons a mix part of the the the talk at strategy. and go $XX to change why we billion out move earlier, saw that's of you deposit but that

this comfortable to year-end. billion at point, So by still $XX very under we'll maintain I'm that position able be

Wood Lay

All right, that's all for Thanks me. guys.

Drake Mills

Thank you, Wood.

Operator

Stephens. from go Instructions] Matt go ahead. back Please And [Operator to we'll Olney

Matt Olney

as the balance about and there ask of were to the the to I is want going nice like term, just sheet year I some longer the about Would to then to decline. market It up. hear overall overall BTH, in in follow looks relative the the of gains mix mortgage warehouse. taking love XQ. commentary guess, layer the you share of size for the the half back warehouse Thanks

the of love plan but about short-term plan the for kind also would the hear kind to Thanks. I more warehouse, size? longer-term as far the of So as

Drake Mills

next obviously, of and we one is pricing to getting the not quarters. not down that mortgage have going – $XXX but at of the strong million a because we've quarter, and mortgage Yes, point. as started about the the growing would I the inventory. And in we're This chase last in pretty of going going to focus. – see And just be sheet. up we're going see see to is what relationships. had I at And we're but pare lack try We're tough, mortgage reward we're wish for going four participating just the to just next do the Matt, all going slightly were growth $XXX we But inventory to into that support see from of might love to and continue in we X% the going to we'd of this think we're we're we're deals. increase to tool somewhere well, over volume fourth volume two that. the of loan markets. some cycles our balances, BTH, strong that But exiting mortgage and investment we're going – some million loan using the the are from numbers to we warehouse quarters, I I opportunity. an the X% be strong seeing that. on with in got XX% be they But all quarter, to really below warehouse. to because and run I've this I And I by end that see because said think balance that couple thing outstanding that sake don't consideration – strong business, this to rates always that about – keeping doing third especially point end went through the then this see fits of by range to the is the this I of is we years, to not

to of see that So for we'll to we'll now of But range continue quarter. that. I'm the X% the third going by the end monitor in say that outstandings

Matt Olney

I closing. think that. Appreciate it's BTH, to And back going Okay. Got then it.

weekend. I think you said this

thinking cost at Just be remind time associated that about the the the line us back and year? how half conversion we the saves, should of of

Drake Mills

Yes.

to map The close saves AOCI going what is quickly this feel line cost even early is deal, comfortable change October. is conversion. very we been think about conversion with it with go by and That good in what's is the name the we'll We after we that. considerations well. Monday. are with we going to the through I then how And be about feel very announced amazing going

the do So I saves. feel this. good cost working people about good on

will up. We are high-quality I BTH. of some open picking fill tell in some now people you and this, our from we're that up positions picking

out defined great they it's they with labor incented One loyal we're I'll to hired markets way a very people. it way. organization, able did, are and the very blessed that And They also we're are they hard very to BTH the them and is high-quality and So thing partner that good working people. with fortunate that in them. how say be to

I look go I like at in cost announced, that what our So can disclosures we saves is you feel see that line. in announced that not – there's good and we back right now nothing

Matt Olney

And Great. a then just here. Okay. few more

side, On was the like fee strong insurance it looks in XQ.

number to still we talked about a think run about side? that insurance feel million rate good Is a I year. any update the $XX for you Or the outlook? on that

Drake Mills

increase I comfortable million $X that I'd that and yes. conservatively. pretty with Yes, by feel

Matt Olney

Okay.

in tax commentary then in XQ. And rates like it looks the Okay. quarters? Any the had few it rate next on over the some noise tax

Steve Brolly

Steve. Hi, Matt. It's

about for We the to tax with actually it now leading it's in, expect to that where states the rate losses. we're is right be the AOCI various

going the that also expense. And So there's is BTH tax we're not state then to some to with transaction help. merger, expenses going to have going be

two XX% think around the pretty XX% say at somewhere XX% the for quarters, would normally we look is where it accurate. I next we typically, to is So but

Matt Olney

Drake, about that, lastly, Okay. guess Steve. thinking I just just Thanks priorities. for And strategic

that You on deals you're here about, going next closed few we've be on to the closing BTH talked the insurance days.

strategic or step list the next at the the top this two, back about Just that taking think other priorities are year at you point? of as a any

Drake Mills

what months about on. down that we bringing am, to fairway one talk as thing that's is into because I the let's announced with two going six to before is, think deal years us we BTH the be extremely a get I Well, next important and

integration. are completely we off, First focused on flawless a

the important. good I about people and that's as of you, process, they're just of well. tell can feel I earlier, And BTH integrating teams And the their to the is puzzle extremely that's the base. doing, mapping be the think very operational going piece next towards said attitude I I our critically what going customer

We're So right advantage organic on I'm going still and time. at on, our integration. to to of outs and flawless focus the the strong going say and right lift going be growth taking is this focus to

opportunities. significant have We

them But what I earlier, picking because As see. does we're all said we're just we're and not to continuing they fit just the up up portfolio. picking don't

important. And So we're on as we expansion is gaps growth moving in extremely the methodical and the our focus that going close organic then strong to markets forward. metro

to what in looking We these the standpoint meaningful would from have markets us. we're be meaningful the some for at to in opportunities, rate, it's up filling of be to several That's really starting Preston in not are expense run in picked provide I strong as Houston. Lake, opportunities going say, of but South holes Center, that going

the metro organic ensure to So that's right doing them continuing and strategic the six on markets we're months. our going focus be resources. next enhance Obviously, focus to provide there, these and things over that East Texas fully growth from in to to

I that Dallas-Fort we're opportunities in going involved be she will something talk over have so will be teams next some Texas year, involved but is that to focus on we East about know I in to our Texas, in that Worth, Obviously, but going process, East on. think Texas. East I strategic the significant process. bullish there's be Sirman, but Lori think expansion I am

Matt Olney

guys. Thanks great. Okay,

Drake Mills

Matt. you, Thank

Operator

And there floor over Mr. to are I'd no the time. turn this further questions like to Mills. at back

Drake Mills

opportunities. everything ensure, to today, have I into Well, of first off, time organic I will the was I down opportunity advantage investment, bullish continue especially performance in you, a capital on we they'll our to forward that the to we and Wally take our infrastructure, coming to But of investment. to you, I'm bank right addition see the we along opportunities returns thank our everyone, can't The the we saying line. you bullish high discuss for ensure period, we quality, I appreciate partner that condition position, each the am moving strong the have. how your make our this do institution. credit our recessionary of am in people, of that I to places move strong a support, Even position, with and us confident as and their very significant and on decisions opportunities strategies, as your our power be in bullish recession, with our Steve – footprint working Matt, how a that though I'm the are high and one also growth of provide with sure to position tell we people performance footprint. we're of strength on continue our that the talking

your So see today. We thank time opportunities. you hope for soon. for you Thank to the you

Operator

We you teleconference. Ladies you. gentlemen, Thank your today's for does conclude thank this and participation.

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

Origin Bancorp (OBK) 30 Jul 222022 Q2 Earnings call transcript