Earnings call transcript Q1 2023

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Operator

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

First Quarter Earnings Conference Call. My name is David, and I will be your Evercall coordinator. The format of this call includes prepared remarks from the company, followed by a question-and-answer session. [Operator Instructions] Also note, this event is being recorded.

to Investor conference Relations. like Reigelman, to now of Head would turn over the Chris I Please, go Chris, ahead.

Chris Reigelman

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

the presentation statements release. by available Please during made For please in earnings safe on release harbor those joining are SEC phone, call that today's and with of note our note harbor to our www.origin.bank. yesterday. the at All X the slide are presentation safe available earnings Page is comments website statements slide subject our on our also filed

morning President Accounting happy Wally and presentation, this Risk Preston joined Brolly; Financial Officer, by Officer, Jim and Wallace; Chairman, of President Chief our be and the Hall; Steve Chief Moore. Banking Lance to Chief Crotwell; may CEO we'll I'm address Bank, questions Officer, any you and After Drake our Bancorp's Mills; Officer, Chief Origin Credit have. CEO, Origin

call Drake, yours. the is

Drake Mills

Thank you, Chris.

manage history. We focused unfortunately, time. I've and strategies to our experience long-term deliver value has through continue a company our that XXX-year of customers, to success, of communities management long-term throughout to on the strength this company that and our are of shareholders. and And the Origin multiple been both we confident consistently in meaningful have employees, for guided cycles us third here this team

the to we have in opportunities we advantage of as past, are during these times. presented Just positioned the take

intense. we that environment entered the were deposit industry sources facing clear an we XXXX, it where competition was from were outside As

Our to while adding primary growth. franchise protect was deposit deposit strategic focus our

dividends. long-term generally with they a strategies, pay most cost come with As but

not that on only the Considering amplified the we outflows. take support conservative decision I liquidity situation. events in return feel our excess lost working issues these in the possible our future. The through occurred industry early will the March made to deposits model, management to to that cycle deposit and this in near

I we am proud of quarter. advisers as we the result, trusted deposit And team trends serve for our deposits as stable, increased in as were took a customers. March actions our to to total a and the

company. the it success always of and long-term to Origin, that to our believe drive for I For our comes relationships, strength will continue back relationships

this positives There took place were many quarter. that

ended Our nearly despite Tangible our during value tangible the sheet. grew the on X% excess common ratio equity to $XX.XX. book X%, quarter quarter the balance at liquidity

X.X%. warehouse, Our grew loan portfolio, excluding mortgage

Our assets points. just remains income both noninterest credit basis charge-offs our expense beat pristine, in and nonperforming XX and quality of digits the with single net expectations. Noninterest

Look, This this at team through management I is been different, cycle have stronger to continue be multiple in experienced the And company bullish each cycles. on out end. we while come Origin. have

growth dynamic grower most proven some in country. a markets with a expands that of organic across are franchise We the the

Additionally, we East Mississippi North base have now Louisiana, rural throughout and deposit Texas.

our Origin this All our team disciplined stakeholders. both customers great gives I'm of that loyalty stretches around have and provide culture these in will the to experienced generations. so confidence proud them. credit markets value the whose of management All me all

Lance. Now it over I'll turn to

Lance Hall

Thanks, Drake.

the our clients vision our one our during done is trusted components adviser of job of teams being quarter. central advisers really good the statement, to a have first of a Being and

bankers and Our our in resource. clients to being proactive providing responsive were and a guidance

of and our grew And started first this XXXX our in our on for almost centered was as markets. primary our efforts we calling the showed quarter of all teams growth. One focus emphasis we around areas deposit of deposits as in

in In up QX, were our XXXX. account compared to QX fact, XX% openings

a deposit well the industries As and our differentiator Origin is we geographic mix. base the of diversity and as for It's the strength their IPO, granularity franchise. as key of about talked our since our customer

deposit our Since come the granularity deposit our proud I'm of later strong into March, detail built our the has Wally deposit enhance of they presentation. have franchise. the bankers portfolio community provide to bank focus. will early about events mix continue as more in relationships

growing quarter, first building disciplined X.X%, relationships, continued the In mortgage loans to our approach warehouse. excluding we

structure. remain bankers disciplined pipeline strong remains Our and on and our pricing

understand growth. Our continued ability critical loan our to to bankers grow deposits that also is

right As we've the place done we to markets. opportunities previous in cycles capitalize our in of have on team within the disruption,

capital. loan credit growth, on laser-focused are and pricing, deposit and We quality, liquidity

never We what Origin our unique, of sight makes will lose culture.

has Our culture made what stand into Origin our to employees' is relationships out. commitment

our We employees, provide strategy execute our and on to value will continue and communities shareholders. customers, long-term to

I'll it to Now over turn Jim.

Jim Crotwell

Thanks, Lance.

phases reflected relationship As as Drake XX. Lance credit portfolio positioned we underwriting all to drive mentioned, to banking and continued Slide of our continue of XX cycle. This on focus economic consistent as strong the the approach well, we metrics by both our adhere credit evidenced throughout has to as on on portfolio sound by the and as Slide reflected diversification and quality

total quarter due X.XX% as loans held of quarter the while Past investment, investment. stable loans nonperforming held loans X.XX% at ended ended for held remained of of March Classified investment the for XX. at for X.XX% loans at only loans total

of an levels in experience reflect these those QX While in below did metrics during the we XXXX. both reported increase quarter,

these in of million. nonperforming held of consisted were relationships the five For increase of the million primarily $X.X current the loans investment acquired. resulted $X.X collateral The a of review in for which six allowance relationships, quarter, underlying of

annualized in for X.XX% basis. came an charge-offs quarter the on at net Lastly,

$X.X quarter, $XX to our credit held we from increasing the X.XX% X.XX% million mortgage of investment allowance million, increased loans to warehouse. During losses a of as percentage net for for

evidenced an in be XXXX by to XXX% to to headwinds. strength of given reflect the reserve The in our continues for level QX portfolio current allowance increase loans QX XXX% portfolio the resiliency, nonperforming and compared appropriate for felt our our of at XXXX. was our While we incremental continues economic strength to

degree will likelihood As country. impacted to continue on will we be that previous to a monitor indicated recession economic an believe With the said, we have to rising markets of other rates and that we the on by the of portfolio. lesser serve closely than we a areas continue of impact calls, the our recession

it felt share we insight portfolio. would beneficial which our our portfolio, to office Lastly, be represents X% CRE of only into

evidenced Slide CRE by weighted XX, portfolio positioned, average As of our average loan-to-value reflected million an is and on $X.X XX%. well size loan of as office a

our of charge-offs. dues, be approach. reflects of to and performance, sector As with sector only nonperforming The classifieds, again in portfolio. relationship-focused evidence this summary, is very pleased we this performance past position continue no In no our X.XX% performance and credit no the of to

it turn to now I'll over Wally.

Wally Wallace

good Jim, and morning, Thanks, everyone.

in the $X.XX In QX highlights. $XXX,XXX after basis, to excluding of adjusted EPS reported on Turning securities. we diluted QX, earnings financial an were On sale share per $X.XX. gain of

Jumping straight to deposits.

include in added favorable X.X% deposits deposits deposits. Our or to brokered in grew down We These pay borrowings February over $XXX XX% pricing. QX. million to during brokered numbers annualized due

was about Excluding X% these annualized. growth still strong X.X% a or deposits,

our and than our our public commercial, deposit portfolio. dispersion comprises XX, deposits. Note of our some on deposits across in deposit our disclosures X% see base, granularity can commercial Slide total more provided you note of the Furthermore, consumer deposit funds of have around our we no the portfolios. As presentation, where new industry geographic

uninsured of the XXXX, and our at end comprised deposits deposits. total Notably, uncollateralized of our XX%

deposits However, events XX% uninsured following end into of and shift unsurprising early March, have program, deposits QX. we comprised the Service uninsured an uncollateralized and the of Cash deposits customer seen the total at of IntraFi of

has though pace. shift in at slower continued, far April, this a So

trend the from not deposits have in total industry immune interest-bearing noninterest-bearing system. and declined XX% last has Origin to or has deposits QX been A been XX% the to of accounts, shift these of noted into at and of clear in whether we outside banks industry XX% QX. pressures, QX across our a deposits noninterest-bearing

This deposit quarters. over led the in two combined in the increase an acceleration deposit to pricing, past shift with betas deposit has need to mix,

increase, we next least total or will now at As at of cumulative the and for QX, our XX%, beta quarter beta continue deposit anticipate to stands X.

the result of a interest margin points pressures, these net to contracted during quarter basis As XX our X.XX%.

also adjusted points, X.XX% X.XX% margin accounting to from our million XX Excluding interest accretion, in basis $X.X net QX. in net contracted

to carry margin of negative mentioned, early of we events As during the The in $XXX,XXX March, basis us net liquidity million and interest decided $XXX points. excess sheet. cost following add prudently this roughly QX Drake our by X interest balance pressured to expense net liquidity in

to basis we sheet, $XXX,XXX, million least. the approximately and excess in point a negative net $XXX balance over current on points. expense it we'll estimate held pressure liquidity by term carrying interest at roughly the likely assuming are interest basis margin of $XXX,XXX quarter carry, full near for XX keep and net We which XX If would roughly currently roughly

term on discount FHLB the Lastly, on at various bank advances approximately liquidity, sources of various balance QX. Through funding million in available Fed's have our the $XXX liquidity. in liquidity program credit, end $X.X the already the on we of and window, lines of top billion nearly including our sheet of and FHLB,

income. fee to QX. in on Moving reported We $XX.X million

investments drivers QX. fee from QX's $XXX,XXX a were $XX.X production loss sales of million, in business, in our and partnership $XX.X securities, gains our adjusted Excluding to was our limited Seasonal slight in in income insurance up mortgage relative strength of in QX all segment million on increased increase QX. our in

Our to million QX. $XX.X decreased expense noninterest in million $XX.X from

$X.X excluding merger-related addition center expense million office. new million. XX% of from occupancy to increased However, expense million the to our to and from $XX.X $XX.X planned Of and a increased production noninterest mortgage QX, roughly expense note, in slightly due equipment $X.X in million QX, one banking

liquidity noting despite to of the that X% Turning worth we is March. pressures above ratio added capital. TCE in the our remained excess It early

been we in ratio million $XXX would have calculate excess liquidity, X.X%. TCE our Excluding

liquidity, capital the improved well to Additionally, continue and ratios capitalized. our quarter this we excess regulatory all despite remain during

no it capital would the held-to-maturity early ratios were March, our securities losses in of events for in prudent given we that securities they note to feel immaterial, impact these is our classified sale. to million unrealized and have available are $XX.X as Lastly,

turn that, Drake. With I back to it now will

Drake Mills

Thanks, Wally.

I have history our As we can times. quarter, that capitalize throughout we in proven opportunities uncertain last on said

enhance strong, grow our footprint term. foundation continues pay provide in for to franchise in long The growth profitable value. we and to is Our economy will the relationships off continue opportunity our to that

teams through right advantage the with positioned We combined in in the place East Texas with to organization. Worth growth Louisiana drive to our continuing in BTH The for provide Houston. addition are and of to Fort strong our of Mississippi, value teams Dallas, uniquely acquisition, opportunity and take footprint

banking about of bank to We respond only in history, our from the with two largest proud month this engaged away March, considering in failures was needs employees took the customer our of meaningful the I in tough remain conversations. not our U.S. to communities with During shy what conversations industry. didn't place watch but

As we our a matter not this of episode long-term and fact, conversations. And strategy. change didn't initiated will change the

strategy. will not short-term culture continue to March to strategic and distracted our our recommit celebrated our Our that on I'm how reflect moves but Each would amplify of the time year, equally to position celebrate values. were designed month. compromise by value. short-term we strategies our to ourselves team us Instead, to be this our us and team our made well-defined in culture proud accomplishments, execute long-term vision for our we dedicated results our

for customers our to brand. our unwavering our loyalty thankful and I'm their employees and

will building long-term commitment and culture our sight of lose to We relationships. our never

and success continue our will make value. right shareholder decisions to We drive ensure the to

being on call for you today. Thank the

We will for the questions. now open call

Operator

Instructions] from comes [Operator first Inc. from Matt Stephens, Our question

open. is line Your

proceed. may You

Matt Olney

Hi, morning good thanks, everybody.

Drake Mills

Matt. Morning,

MattOlney

start impact to on you Wally, and And provided on that details good liquidity the the discussion. want side. I the excess NIM with some

what I what better of the deposits, do million just trying today $XXX on for that the cost just funding today? Thanks. On deposits? the broker guess get still just on other was of this a you And new incremental is to And the lastly rate incremental these brokered? side, topic, hold idea

Wally Wallace

a - is point to - that trade-off Good wholesale in on X.XX. deposits And is funding that decision we using we that going those positive time to initial X. on or for now was at morning, it coming wholesale being, the over. cost. on FHLB. least Matt. that carry The fund now around we broker I to we pay the made broker assuming off at broker make deposits want put a around came Incremental is deposit think to that move One, trade the brokered the positive And are

MattOlney

Got it.

as cut if That's of broadly, And curious But mean on then rate Wally. see what just about rates are Okay. didn't I clarity for the be or a kind the I'm these that I sensitivity? there obviously, expectations I we helpful, been know there's margin. to about, if the I guess about a and from more for there? when putting something higher deposit talking just as curious while. the far pressure costs. Fed, still there's on know if that's work sheet, more we've balance plans done

Wally Wallace

Okay.

remain So to that we would were sensitive answer answer point sensitive. to less I'm Fed, sensitivity, we question, used assume we a first. significant If from tell of different XX I'm than your the sensitive. we I are ago. up question asset but basis Matt, you going asset a we asset year our a remain today going we another but do get that We've hike portion asset

three or don't would see think cuts. we the that impact for say, the meaningful Fed, should the from first, four be So a we cut

equates a to X% about X.X% hit which assume Our NII, be to XXX, basis X that would points to models to that down NIM.

Matt Olney

Okay.

Wally. for me. lastly helpful. that's just then And Okay,

Drake Mills

Matt, this of was We because that add deposits what group March. higher-cost those to to broker replace taking conversation off deposit to in impacting deposits debt not paid ratio, brokered I meaningful. but on the down happened last because deposit because some is we that would loan like in broker And I took think February

MattOlney

Yes.

I that credit that of X it those these was a acquired? specific don't guys that color think I the the much? Any it was over as Or Is added the the maybe is relationship Okay. downgraded. mentioned were acquired, nonperformers And were to were that months Any because Any incremental from the X were acquired. there new were kind loan borrower of these And were something were X nonperformer? Fair that color you - X you point, added, recent that. that that Drake, guess by thanks that to theme that for going more shift I discussion. on type? in know on downgraded deteriorated borrower? to from

Drake Mills

Jim this credit. do off, on let to first going go through job. on an I'm some aggressive how numbers And of are mindful Matt, Yes. excellent because they be we

the BTH the feel very internal are but and underwriting, only majority through through diligence can't did of we good they loan standpoint, the external a we went good on - penetration. Secondly, from due review job relationship, portfolio, well, a the in review not like remember loan entire but we I

so. or think it I XX% was

substandard these we But in took aggressive saw we them are, it. do, worked through we we that, classification with weaknesses how as some credits. a as through always into And

million to I published, quality, at what's were million, think us out potential aggressive be to of read And of that this might these. see of that million with in credit $XX our gives some worth and $XX headlines you $X to room look million able think frustrating to me overall when is I the about it be credit. $X.X in to we loss

sure with opportunities to BTH we make that right So this I us think And look, fold, them have into the the is did was addressing we relationships relationship. good the with and thing for this They there's are. we in there bringing and were no folks, for about credits. in But that these deterioration wasn't anything I - longer-term where consistent feel portfolio. those any don't

So Jim, to want to anything you that? add

JimCrotwell

from comfort would kind Yes, some folks of some to that of we much - from to in relationships. add of try Matt, front. comment on I particular have and just an we the discuss, perspective no these these reserve we give that narrative There's quantify - how that these industry

One and our there's family positive also working There's over looking some of toward towards of these lot some of even overall very the I things in perhaps which we're maybe credits some of exposure, and taking to positives things looking on debt, coming say, going some with reduce reduction. exit. happening in the some a would

put me kind So But of they as I'm as relationships, and we're positive don't really and portfolio. we're we've them say what very quality we credit and worked overall point, to on particular in ahead went any these to on these you in credits. I deterioration nonaccrual. Drake's would conservative if the going And will, pause, from give our outlook to an accomplish

Drake Mills

you total to to of would loans, we shape. we're peers, our very that, And the that with quarter Matt, where at basis add good in compared XX still numbers our I are points and when with look through nonperforming

MattOlney

would Yes, I agree okay.

in Thank step the Okay, I'll back queue. you.

Operator

Thank you, Matt.

from comes James. from question Raymond next Michael Our

is you Your line open, may proceed.

Michael Rose

Hi, my good morning thanks everyone, taking for questions.

term. stick Was Just of wanted if said of your comment nearer that around on in just of you incremental? to the impact. I think And kind go drivers Thanks. side? expectations back the XX Wally, I Or the basis expect point and then that side just to the nearer on impact. through can both of is on a to I you liquidity term heard full deposit that a that you And in the loan that know then impact? here for betas outside repricing of the walk some quarter kind kind

Wally Wallace

Right.

on XX starting the Michael, not So basis incremental. points is liquidity, that

it be to net were it was act conservative, point liquidity. interest liquidity it prudent the thought another XX So We to took this entire hold for would We some off, Monday. the added the Silicon do. basis to we impact quarter, We prudent margin. it took least announcement. on it remained season. the at one Friday to following liquidity keep starting but We we We've Valley's the through roll let thought earnings of after that

the people, their we could of it sure might thought spook stable, there weren't and liquidity. We was to sure it going out were negative felt to data, deposits. if that somebody was prudent other We like banks we what but show another watching so industry be were HX in the weren't announcement keep

and in to when will off, look know be but stable, yet be. don't that that to that point time Our if go continue we ahead roll we exactly expectation liquidity is let trends will

actual to we the due going tell you is pressure hard to think what it's liquidity. to be So

what So quarter, way thought the have it tell is. just what the if cost it we we that's us. could full do best we it for it is you And will

had in a bigger part your some picture second we if want. you for then can comments question. dig it might throw Drake And to to I and you

Drake Mills

And you doing aspect Michael, look portfolio on not certainly curve our and the the of residential think also single-family when XX-year when that, I of the and side at there. the favors look warehouse, you any inversed at mortgage us equation, other

slowing be portfolio probably But residential as looking on want focusing are this are two that at single-family this where residential - on down. having NIM on to anyhow at we at impact So we whole their much pretty pricing And classes a we're asset those and point. point. certainly

Michael Rose

Yes. of just And that and here And the quarters down bit, expectations given the the follow-up would was you expectations add. beta repricing kind of ratio was what's to it, question the loan can helpful. cost further from on for of brokered increases. over maturing on increases little a Loan-to-deposit just obviously, provide the be of side extent next just couple the kind kind then

Wally Wallace

about talk to be yields moves repricing new kind pricing the it's let's of just from We're would forecast for deposit loan the right what we think And and margin interest ball. going could loan to that kind we you interest now to margin. looking net Michael, hard into and exactly think this net crystal impact of what So the I holistically same from all is be. us tell

a continue in to see beta the like that slowing. deposit that increase. is continue do deposit change in we mix, the We prepared think do shift it here's of we that my think. cumulative will I said So though remarks what rate feels to

out look in back NIM of you change, take basis XX at was first basis about if add look the at to and liquidity X the quarter the quarter-over-quarter you the you points. If so that it you right, picture, - points

interest that We do pressure margin, liquidity, excluding net that not be excess will expect high. to the

it's want, If trough to continued thinking third hope challenge a you you how same the ball or expect a layer we're to net number and in us. then at see see in But and there. stabilization it. second would about from the all you'll crystal looking to We quarter that's interest some liquidity however get and we're then in forecast. near margin stabilization again, That's and the

Michael Rose

it. appreciate Mine's follow-up final Maybe I cloudy. No, just equally one me. for

Just this good. quarter's really loan growth was

kind I finally how is existing kind the funding much was to given of that wanted construction mid-single-digit then think that on all. existing sense balance talked near warehouse than a of of about just Thanks a a Just ex average? lot of fund-up projects of And can And just commitments. comment period the you of wanted Just get or previously, growth. if more higher just of get warehouse, term. you of thoughts end to

Lance Hall

Michael, good this Yes. Lance. morning, is

right. people I years, benefits exactly we with we dynamic couple of over mean the from investment continue You're that. obviously, in to last made markets the in, the were we see

quarter $XXX were million this draws we've So that XXXX. we on in booked had about that projects

So expectation mid-single the we looks will saw level the the in half some very think in similar growth that the in year for half year more is QX like of so our we second QX. that that slowdown look digits. Then organic of of second

Michael Rose

And any Great. on the just thoughts? then warehouse,

Lance Hall

I our really about good group I working mean about these talk side, Been has think in job. very, credit done talk side. then with very we'll growth the the a proactive clients. I'll Yes. warehouse

as try added know six expand one to who levels reduced project first in of clients credit somewhere and four and to over quarter, we time provided. We that period we sort through the that that we the between trends. of client look service I back have wanted to and missed

looking that up been know to I flattish we've little bit warehouse. a mortgage So at for

Michael Rose

Great, my question. thanks for taking

Drake Mills

Michael. you, Thank

Operator

you, Thank Michael.

from Our Piper open. your next Brad question Brad, Sandler. comes line is from

You may proceed.

BradMilsaps

betas deposit finish my morning. stops follow for the Wally, Thanks Fed on thereafter? Origin taking one to to more just or shortly margin once up you ultimately the questions. Where good question time. do for Hi, expect

Wally Wallace

know that would the the do than it's we increase quarter up anticipated. we not go to we And I hard XX%, that we're don't like what over over question a we deposit coming that for We're tell - or That's in is hope is. beta we to going next will that a modeling that had X. Brad. XX%. it model expect higher answer, from I but we it XX%. go you mean don't I'd

BradMilsaps

- Great. interest you that than I expense, there's think, think would which I correctly cost I it think, I half less a And of margin. But the on That's just liquidity penny lot talk you, I only is, know in heard and helpful. a share. a $XXX,XXX if

it's heard So of sure, to think b, not Is a, what that - And I margin - seems way want it the of but to I you move just that it it? around, earn. inconsequential correctly. as make obviously, the just can about to sort going kind relates you're right to

Wally Wallace

let one, prior And Correct. me my clarify answer.

beta. Just be just it interest-bearing about not perspective shift because like talk talking to to total deposit clear, from deposit the I'd in we're beta, total mix. a deposit

correct. You are XXX%

the of was that especially relatively given negligible. worth the was taking the impact impact NIM Our earnings liquidity view is that it,

the on that earn So net of that that interest, script, that that is cash expense, I overnight. that interest XXX meaning the we net in carrying the XXX Fed to cite at

BradMilsaps

then one perfect. for just Perfect, Yes. me. And final

I that think this are last year? that annualizing about terms kind feel of thinking quarter, then of growth over and expenses XQ you still how talked sort of number. of Does you right guys mid-single-digit expenses in sort about

Wally Wallace

guidance. we're We you our expense will best like But we now, on we that. beat Yes. focus like guidance. to that that of and base, that are still renewing still do our I our tell to going kind right

BradMilsaps

questions. Thanks for it. my taking Very Appreciate good.

Lance Hall

kind want to on move make one on, deposit I Lance. follow up the to this comment we Before of is betas. may

last be we really we the rising. were expanding we year Just in sensitivity NIM the our mindful focused about were rates as had when on asset XXXX talked that and

increase until we X. so didn't November And rates deposit

deposit QX QX, cost looked year, you when So didn't see last at increases. we

in for see jump annual advantage still So compares perspective, a to a us. will I we well be continue which and perspective, the think big cumulative about have quarter to from a think of sort you from when beta that an

Operator

you. Thank

KBW. Our question comes next Brady from from

Your may proceed. line is open, you

Brady Gailey

I year? year, QX million strong feels at for Insurance Hi, if Any I better fees. $X for than you a quarter. a thanks, insurance fees. the about pretty of nice of is little look idea year? know do good million think a that It last over did this morning on guys. $XX seasonally you quarter, you'll outlook like the insurance had

Drake Mills

insurance several Yes. consolidated office, on things are back point. consolidation We systems. to we have - point at we're finally with going where from this so the these getting A

with our We're actually most But hardening more of seeing one of nice of recent place. because to on people acquisition management, the market. in accomplish. we've restructured the some putting have growth very growth the We top

move the driven. first a - a see we've contracts volume-driven also, loss continuance from We volume and that in been loss of of from because cases with a ratio that. quarter, couple have been on of income a contingency markets, moved we Also during nice to markets contingency, consolidated to Especially a with us. working the that's very now for from other share to I mean loss ratio

how So also I those all minute But working. those the continue to side been efficiency able consistency that. - drive as you some thoughts on we've some we reduce end, that and cost do some back back-end agree in some the the for of income give and on on are with we things all in I'll of cut agency are the to cost a you. things.

So a because of commission see lot good of we working in the an things increase increased volumes. did also that rate

we with are. digit the agency to in year. where I'm from revenues But insurance mid-upper kind very all of on a this And pleased single anywhere said, digit increase thinking

Brady Gailey

trying the in about And helpful. we this talked know last to That's quarter, right. asset I under stay All $XX threshold year. billion then Origin

end you year basically With that further the at billion out? of the excess stay liquidity, still away. you're one company can Durbin now almost the $XX.X pushing go billion, that but think I can under $XX this Do year, know

Drake Mills

Yes.

of XX.X liquidity now, me. a slowdown couple have have we're say, to think a triggers is to to be XX.X $XX growth said, mean what I still trying X.X to strategies that, right pull off and $X billion added end mean that and that We half, can going excuse get specific and natural we're because - let's we in up the - I you place we feel if I'm like confident I about year think and increase take and XX.X have, billion, and we still over the feel the We in between, will excuse sitting us in with billion. the in me, second we anyway, $X.X get But X.X. we triggers the And it. pull. with

Brady Gailey

Okay, guys. all great, thanks right,

Operator

Brady. Instructions] from question comes you, Thank next Davidson. [Operator from Kevin Our D.A.

is open. Your line

proceed. may You

Kevin Fitzsimmons

the Thanks end for at of list guys. in squeezing Hi, me the here.

there's deteriorated over? know more on quarters, ahead be curious Just in just aggressive because it. just later? approach aggressive, address get economic Or it proactive downturn, time we're these prior going they that one question a credit let's credit that a to more particular an was loans, anything than or been was was And of it I that with was on let's them earlier it, addressing needs okay, point to into migrate to

Drake Mills

you Kevin, give the time. end, thank weren't you fitting you. we at We want to ample

after that not we that of do again surprise, be see managed that future. very approach we've to and loan to this the Now we've we with is a this the a and fresh was think portfolio in are BTH as how to our We it's it's and external-internal the last we aggressive how few part credit. incredibly do taken transparent, credit approach next our we bringing things partners important the fresh in, reviews - a aggressive years look

a sitting I today. is we've in, we with the their to portfolio, and what here never we have normal nice through. that do And XX-year And stand that and had credit. It's process on not just will history partners it's bring looking this at go good deteriorating we're not in we this, every institution, asset nice doing quality us this - But been quarter. feel we my our about it's

Kevin Fitzsimmons

Okay. Great.

quick bottoms, Wally, shift that just kind you headwind Any where one for of for Just you contribution, that follow-on. sense mentioned it's earlier, on based of you bearing the cycles? something that's noninterest a is slowing. And everyone. mix think that out past said DDA

Wally Wallace

Keep mid-XXs time in stabilization fund as right growth tend we growing, our bearing. with watching percent for Incremental see. what a interest kind thinking to we're Thank coming more We're of So But question. deposits. deposits the are also the tax on now, that of double in kind that's of we're and Yes. to - working we receipts, right? that be last right biggest mind, you deposits. total of variable that of level to model, now and part

Lance Hall

Lance. is This a Yes. point that. throw I in might would around

I our us. think it wide, hides for of industry NIB provide opportunity sort hidden bit of rural a inside of little the markets that runoff the

very positive of North we And the if granularity. saw Texas, So Louisiana, think through QX, and look Mississippi at deposit because that's even East growth. I you

clearly incentive XXXX, We've in the bankers the in past where the of plans. you talked lot deposits $X when I'd It's we also loans, about and valuable, that Historically, a of is more was way understand formulate tell the this. to deposits equal focus. $X

deposits were in NIB So plus off able to happens runoff, seasonal, year, overtaking the is grow rural QX we still that grow tax $XXX dollars which every ran to our We in that able deposits. were markets. million XXXX, in

data because our new structured account that one point the based then at incentive we looked were that the our way QX of XXXX. we've up actually company, openings the on and plans efforts XX% calling versus was XXXX And

So a that clients at an putting both also that we new and are time tells NIB for from rapid but on money perspective, markets you deposits. pace,

be and proud rural deposit our we continue to of positive franchise. bullish super on So very and the effort,

Kevin Fitzsimmons

and others. curious One you from in Great. you a guys the I'm year. the and/or less unclear mean to credit, to scrutinizing how stack just one like it on profitable consistent given terms becoming or with just the as loan discussed more quick Thanks of I if directly profitable from back either half what drivers be the economy of growth pulling - opposed slowing funding. put in rank we've loan can lessening balance what heard the credit may or Lance. on the demand slowing ballpark on that's on back we've sheet,

Lance Hall

Yes.

moment. the deposits that's actually think where lot cost incremental is of ranking a stack of and I I and them, base our to ability If deposits. our were the right on grow the that's it at those would question, I conversation

have about We clients feel dragging which organizations, pipelines. credit. have healthy good the bankers old from that really their are we We over still

our growth, talked us, loan deposit this about why on it's going quarter, growth our I last and for and the So to we governor be way. is that that's think

potential the time, conservative. From good recession what are a pending in very a you are. and perspective, Now mindful XXX% being can are of we we what, economy doing at that we the do? tell job. same I'll credit But bankers our are

that and making franchise. of with talking say sure I I'm deposit our our growth, about pricing when being appropriate we're mindful So more slowing it's about would

Kevin Fitzsimmons

Lance. Great, thank you,

Operator

Thank you, Kevin.

follow-up from question Matt a next Our from is Stephens.

open. is line Your

You may proceed.

MattOlney

guys. Hi,

appetite Just following up and the around buyback. a levels discussion on for the capital

trading think authorization anticipate in active year. would love year. this on thoughts on stock's the there out at discount of Would The and your more get building. last an year, half with to back I buyback growth pretty now, slowing a capital the I big a still becoming there's from

Drake Mills

Yes, Matt, thank you.

chest. it's said, in always our I've As tool tool a

$XX have to pullback to executive our very in an it is think for option. do confidence that a we a continue this from strong team We see as at in available point. I option room, Certainly, and million our that the us, we stock Board our have

I the probably little quarter think. this And second At in and is first the do want to to ultimately see happen going a to this to bank happen part I a confidence to us I give to more the going because potential this season. around is point, way I - to of bit what want do do failure. get see earnings what's want through

is this And I'm institution. my net in - sorry, I'm worth

most about And make that, are when the the use tough X,XXX you families different number think capital of times. I that sure do I support, you you in things. that conservative about think of I a in

ourselves good have we at a hard in this point. position with worked a of to So very ours put strength capital,

to going option an underpriced, company. the do we're for thing. that's us. and in use we right stock, think ultimately, certainly is conscientious it So in that this very do have I But confidence tremendous And sure this I in to make way a that

MattOlney

year? Okay. bit be I Any appreciate little Wally. rate the a commentary, That Drake. effective And we on looking then should volatile also color just one the more, rate tax sort of recently. this for at a has been tax housekeeping question

Wally Wallace

range that Yes. function that think for level - going making to gets we're that are we rate of close. XX% going of earnings a to stick be pretty kind tax you is now, I The and with XX% the to

Matt Olney

Thanks Okay. guys. Got it.

Operator

you, Instructions] any [Operator Thank to back with Handing further for Drake it It finalizing Matt. appears remarks. there no are currently Origin questions.

Drake Mills

in you, I the the really primary two think Bank. about outflows our quality wrap and in you fact of of this Thank customers. when of around today, grew would number condition but the today industry, deposits attending we time Origin when When think an so there's up organization, current more that with enhanced We the franchise about thoughts everyone I and and deposit industry, in appreciate you of a of deposits. period

and what we this From a overall that loan quality, good existing credit book. is quality as are with quality credit best or seen institution look the has on standpoint coming I at think credits ever very new

to partners put East continuing we that that think not So in Texas organization on now excellent to deposit lift-out together, side the with what loan side. show growth high-quality things going good footprint, help but only are those teams are as I to all continue organization, are unbelievably this

deposits. in in grow our incentive to even continue picture. strong end to a primary position the with capital And Our to it, of be the That's big way our plans continues focus. incent AOCI

bullish So this on organization. very

being look partner. the to each Thank seeing a on and for being for forward you you Thank of we you soon. call,

Operator

Evercall. great Thank you, a This have today's day. and concludes

Origin Bancorp (OBK) 27 Apr 232023 Q1 Earnings call transcript