OBK - Earnings call transcript Q4 2024

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Operator

Good morning, and welcome to the Origin Bancorp, Inc. Fourth Quarter Earnings Conference Call. The format of the call includes prepared remarks from the company, followed by a question-and-answer session. [Operator Instructions] Please note, this event is being recorded.

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

Chris Reigelman

slide thank our and of joining today. with us is to will Good this during press you release issued call. the along website, earnings on copy that yesterday We we available refer morning, our for presentation afternoon, which a

includes and to of the Page which non-GAAP our statements harbor financial slide of refer safe regarding use Please presentation, measures. X our forward-looking statements

website is at joining you phone, note available by on presentation our For those of www.ir.origin.bank. the please slide

Please filed note harbor comments are SEC also in are our that statements statements slide of All harbor call our also safe release. X Page presentation subject our available safe earnings to made yesterday. with on during today's earnings the release the and

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

the is Drake, call yours.

Drake Mills

all as want our where and thanks Thanks, I'm enter about us a of what being Optimize we about talk to us I we company to are stakeholders. to this for excited XXXX. and start on as X morning. with Chris, and Slide means Origin

in delivery financial balance creating next functional more of performance. strategy and drive elite-level of and and will Wally efficiency, award-winning built Our entire evolution detail a more year goal possible. to for company. in relief executive is The for team discuss pillars: than our effective than continual a X point make The employee Origin primary is . is Origin and It a optimization optimize perfect, as presentation. deliver enhancement implementing past definition hard has is which is financial is productivity, on and the the time. performance. of the and a to project worked as in or Optimize a of as later that culture sheet Optimize Origin engagement, Optimize over sustainable, basis as Lance this is more culture the

performance this out perfectly performance new into our America company reads that to culture recently aligns financial It our We This statement performance ambition. enhance in vision brand to voice. best rolled the across our our drive be and incorporates purpose and with our to Optimize statement bank extraordinary an stakeholders. partner dynamic Origin's

dynamic and markets corporate a driving communities, the our attracting culture This employee best-in-class can advantage unique by in of grow some serve retaining customer created country philosophy the the base emphasizes best a be and to our of leader proven we do competitive a and has in that more. experience Origin but employee bankers engagement. has

a high X% to quarter continue we will the to actions of implement greater fourth level, rate us have strategic and drive this ROA At run expect taken the an year. that will by or we

believe We our peers. is approximately will quartile of earnings actions already drive target annually the improvement ROA to million the in a of for top ultimate be Our basis. pre-provision on we've pretax, our taken $XX

team. over it the turn I'll and Lance Now to

Martin Hall

deeply in process centers. as commitment drive alignment and metrics, client the led closing announce as Through create data-driven Louisiana include The These merger from Thanks, us and to to product X a well in market, good evolution times sustainable in of Origin Mississippi. branch performance. morning. high systems productivity, invest and our efficiency and North and of branch X delivery Optimize drive been proximity X Optimize in created branch in Origin, to the X The decision-making profitability. with behaviors to banking and has of in Analyzing Houston, profitability leadership DFW. DFW X processes return into BTH collective transactions, in analyzing mix banker our people and the X we're our opportunities branch insights and closures efficiency pillar and to enhance

We service to communities to . decision rate continue award-winning our run confident expense creating annual of $X.X grow to can valued we deliver and approximately in are million a while this clients through reduction.

data growth provides to and our metrics. return clear NIM understand profitability where an Our this was production, stack significantly or team This being loan and past teams. our eliminated, loan detailed to portfolios. necessary and portfolio profile teams banker and growth and view levels, to we report banker appropriate role identified ability banker also and mix, that We our and process have effort truly allowed and where profile, through Using lens yields, efficiently lower sort into portfolios a ROA. mix drive profitability into needed. worked production created repositioning support provided Presidents different portfolio production clients that loan ROAs. higher bankers did into is replace a support and traditional did return production report or bankers a in not enhance profile moved loan to not created of desired deeper from capacity, detailed growth has our bankers This significant the insight return optimize the the our return has We portfolio

areas in mortgage from throughout single-digit with our production annually. with Origin's to bankers opportunities, million our return able in have along as portfolios production cost new in opportunities into confidence and bankers were We drive higher to high to capacity groups footprint, XX profitable team growth talent and created reinvest saves approximately expense our a production XXXX. strong approximately well adding production efficiency Southeast team these support $X.X in use and these portfolio as been annual to drive XXXX. less new identified reallocation This ability into an of of also Texas reduction by We loan

we we have been more efficiency. opportunity On productivity, top taken, that feel have these for and delivery actions of already

a consulting efficiencies additional to First, and we expect data a believe analytics firm on driven will further opportunities to enhance by improve project we significant which that in return February, Origin's profile. reveal are identify working processes, we with complete benchmarking reputable

our to invest in goal accounting on ownership XXXX hope purchased XX%. We our over continue opportunities EBITDA approximately on increase goal. in change of to ownership, XXXX investment. purchase to footprint, getting additional the methodology will shares expansion. which and remain in we our to Origin bullish identify and Argent growth with achieve this to shares very additional Financial Secondly, XX% We Origin's

honored to We strong wealth appreciative such a are trust and have partner. and

an mortgage improving ROA Third, in we have understand profitability. lever clearly we

the community returns on our currently business. significantly with banking a We improving delivery goal mortgage studying of for are reimagination this our model

optimization be so provide on We culture XXXX. I to we have on provide Optimize other opportunity belief to employee touch throughout performance. will the I this want pillar, Wally that additional unique will on details both engagement. have deep a and and culture opportunities Origin great detail and balance sheet a at more production

model investment Our our to a teams deliver and commitment to strong have banking systems elite hire best-in-class and footprint. engagement, foundation experience our customer across created management employee an that our geographic to allows us

size culture of best Net creates tangible and Banker unique be employee us. identified $X incredibly Origin is in client bank extraordinary advantages engagement and Scores survey proud asset greater. bank's work the #X we in as the how with corporate American Combined competitive truly to Promoter our are results, to for for billion our by believe We

and model, with Houston Texas this Dallas, combine of our in you in strategy North funding to our growth performance. Louisiana, Southeast as from is as Southeast, rural When we geographic loan East Mississippi management Worth, to Fort footprint to market well the Texas well Origin drive dynamic financial support culture our sustainable deposits elite positioned the and feel of new

Now I'll to turn over it Jim.

Jim Crotwell

we created great the at Origin. credit a pride culture take We have of Lance. Thanks, in deal

which We loan to selection, often our optimizing process have is and talked about client portfolio. paramount our

level loan experienced pleased continued and release we our charge-offs, positive we portfolio, of initiative results our our client normalization selection provision of the for While the the are quarter. within with

On with. came net of $X.X actual a net We year-to-date driven X.XX%, metric at by we basis, recoveries a reported the for a pleased are recovery million. quarter in charge-offs

resulted an have reductions in we $XXX $XXX which loans. this million approximately of on additional noncriticized million of were focus reductions, loans. desired of client selection began this of $XX.X we desired continued Our Since $XX million, million QX in which classified achieved were year, into initiative

We focus on this will the continue enhancing quality our portfolio. of

in loans prior X.XX% as at up Past X.XX% X/XX for year-end, levels. came investment acceptable December at up quarter to loans X.XX% as X.XX% XX, of due and increased $XX the Classified loans from as of of held from remain within end. million of

X relationships. upgrade to relationship nonperforming the million classified downgrade $XX driven partially loans offset and for the X.XX% was in by relationships X from The also While X the of by primarily in exit increased the of increase loans quarter X.XX%.

of As was driven offset the to by X. nonaccruals, the X increase by primarily relationships, exit

impacted earnings our a result the As to in classified the we were loans levels related the both and positively activity. release, as of reserves establishment contingency banker mentioned of question of nonaccruals

mentioned provision the in we also net paid associated driven and loans the million of during reported reserve $X.X quarter. For by of in that $XXX,XXX The previously a the portion in $X.X reserves of the a million for The loans decrease was outstanding positively portion driven required recovery million decrease release collectively reserve. portion in provision the a collectively by individually reserve reduction $X.X earlier. evaluated million, impacted the decline quarter, of primarily by the fourth was with the the evaluated off evaluated $X.X

downgrades model banker was quarter. decrease reductions material the not As the reserves $X.X questioned did related establishment mentioned of charge-offs attributed on reserve, underlying our the of million required The $XXX,XXX activity. related assumptions We in reserve portion to loans. previously, provision to was of amount the the decrease. ACL evaluated to related paid $XXX,XXX to resulting exceeded contingency above changes off make the the any in the individually the in to to during

to of decreased percentage investments to X.XX% basis, total for X.XX% a On loans a and as warehouse. our X.XX% held of percentage from from mortgage allowance net X.XX%

the this provide XX, which on resiliency we CRE continued focus detail added sector our within of nonowner-occupied and shows office, the With portfolio. market's to continue Slide on performance

segment quarter loan of weighted only X.XXx of $XXX totaled of service weighted million, average loan-to-value a XX%. of coverage this debt size and average $X.X million, average end, As a

dues, charge-offs no to nonperforming this have no continue loans classifieds, and past no within no We sector.

puts support at us and position ADC a which XX% funded and customers in great total quarter growth. strategic to was capital total and our XXX%, CRE provide end risk-based Lastly, to

I'll Wally. turn to it now over

William Wallace

Jim, good and everyone. Thanks, morning,

we In the to Turning reported highlights. share of $X.XX. per diluted QX, earnings financial

Slide notable the net of million, pressure. XX, a $XX.X As you financial equivalent EPS on see to of impact in quarter the to $X.XX equated expense can combined items during

quarter. balance X.X% were the side, down sheet during On the deposits

average and for brokered, deposits X.X% grew quarter, noninterest-bearing X.X%. ex second grew consecutive noninterest-bearing average However, increased linked grew an deposits the quarter, deposits basis, excluding deposits quarter. quarter. up X.X% X.X% brokered, Furthermore, linked On linked

deposits quarter. down XX.X% quarter. ex a brokered percent warehouse, deposits, of as flat X.X% were Noninterest-bearing Loans, XX.X% excluding linked relatively last total to were at compared mortgage

While unexpected, our reductions, stay of were production, decision by selection driven a continued combination which our elevated under new declines by in strategic part $XX these planned billion focus lower paydowns was and in driven in on resulting loan somewhat to client strategic assets.

loan-to-deposit ratio the remained mortgage sheet trends liquidity quarter were off our declining warehouse at brokered use during and XX% to below Our XX%. XX.X% balance remains deposits roll target liquidity our brokered deposits able and strong. to ex to allow We excess with deposit of our

growth. trends the across experienced have of deposit bankers in XXXX, the our on our Given latter part are markets strong laser-focused we

to to We on-balance existing reaccelerate growth with single-digit excited XXXX will loan broaden loan anticipate deposit in be growth XXXX. expectation are and growth an in to funded this liquidity. new our sheet by We high our mid- focus of growth

expanded of for trade, of optimization better-than-expected a basis nonaccrual Turning primary benefited quarter. the to during recapture on loan The the income margin quarter both yields our partial to expectations drivers deposit and basis of impact to above margin our costs. expectations payoff loan margin the compression, relative slightly the our XX were upside and elevated X.XX%, during interest points XX while points well statement. Net interest roughly securities

a and line Loan with yields of beta focus the trended our pricing in estimated trends combination continued our on beta our during benefited deposits. yield X conservatively costs on quarter, curve steeper historical while compared deposit to nonindexed from a disciplined

in stable or we XX outlook, year, the the see expect can with line you this to expansion In in a plus and Fed deposit of for points. as forward, XQ basis point 'XX beta with yield rate XXX X.XX% we margin outlook, in our relatively X.XX% and cuts a minus historical assumed full trends. our basis curve Moving shape

the of management Origin also bank-level to We of optimization during the remaining implemented 'XX practices that from expect planned were million quarter from more in sub benefit and trade, first quarter the securities margin the efficient quarter. our liquidity repurchase in debt of benefit the $XX the Optimize fourth fourth efforts our

expectations our Combined growth drive with growth of the helped single-digit net outlook high outlook earlier, these to our year. loan discussed interest for mid- income

Shifting $XXX,XXX we reported in negative to QX. noninterest income,

a and As highlighted on that partially securities valuation the adjustments. quarter in gains $XX.X sale of our notable million offset of loss included asset sales items slide, by $XXX,XXX was on only

Excluding QX, items income our $XX.X net normal in of these QX benefit notable to seasonality primarily notable items, and $XX.X $XXX,XXX due in declined million the in to from million insurance business. noninterest

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

anticipated. million expense $XX.X in million from $X.X million. $X.X and notable of better we to was had items $XX.X up QX, noninterest million expense Excluding slightly in QX QX was just than

decisions of of made the However, partial the that profitability Origin it did Optimize were quarter. during banker branch consolidation part and as include benefit

additional Importantly, XQ anticipated both XQ 'XX. and these are benefits decisions to 'XX expense in drive

our to digits as slightly discussed forward, 'XX and XQ XQ noninterest to flat XXXX notable calls XXXX compared excluding up to outlook be 'XX compared above. after be when Moving for to current low expense single items expense to down

X discussed our the includes began Origin XQ our pretax in and earnest benefit Slide which 'XX income XXXX, million financial the $XX but as earlier in Lastly, target to pre-provision we started highlight 'XX, benefits growth Optimize roughly for in interest with our XQ combined that efforts, part net XXXX during from earlier. loan of outlook on

are peer in to group. both and of XXXX end, part optimization this our other top of Optimize that, revenue is are outlook. target working we financial during around as currently To the actively ultimate quartile XXXX on an our our not likely in ROA Importantly, while initiatives Origin considered deliver expense launched

Furthermore, of we weeks. areas to the forward looking and additional as anticipate of Lance results help management delivery our study target, third-party identify opportunity mentioned, benchmarking in towards achievement we to ultimate those coming of the are

of about look progress us, our excited opportunities reporting as front forward in are the on We and XXXX unfolds. to we'll

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

Drake Mills

Texas Origin we have Louisiana, and XX my is enter and and what delivering and are has years Southeast. it machine. sustained past better case challenge drove a what bullish From know a I'm of mentality that the to have way in was we the was is out how I company, what is . I a throughout our we XXXX. stay expansion acknowledge into to growth growth on into because Origin capable are strategy. stronger that Wally. billion East is in led as we at feel in That as $XX the to under our history led Houston, it of assets challenges the that Thanks, proven we today. but X results. and and that been proper I us what committed come Mississippi Dallas Origin, years,

of passionate Origin. our about our refocused and evolution next as accelerate strengthened Optimize we the our performance I our strategy company. we team elite future have drive as We level into financial to am

the for call. questions. being We'll open up on Thank for you

Operator

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

Matt Olney

all the few want the this appreciate plan. maybe optimization I I around front. a loan of to off first growth items, disclosures dig the on good down

about saw now just balance sheet were tell I from that's and loan we why quite think to in you in expect talking you more grow about what how the XXXX? else loan in about growth us the the high balance growing What inflection can meaningfully XXXX. we're year you range single-digit in the to cautious 'XX this last mid-

Drake Mills

loans, that to used to billion process. us the have kudos of loans isn't But were take tell we to at we that if can't in looked through the $XX under loans. client it about really bank on worked working and focused the didn't process, team CRE. keep what the that just because suddenly million performing I'm goes Matt, they talked but to And how limiting didn't through. a to those you took and confidence Lance we $XXX out, you million plus strategy look his back at because selection We fit. I those loans We that at pushed hard we $XXX

from creating Our we relationships forward, expect aren't relationship. they a moving just what

go, the XXb and to tough a how take what structure So and closely were was on focus you to going process at process It looking but categories 'XX. loan markets were to we're going at it we impact that look of we and into and exactly moving preparing able was that whole. each look the really for at one it is determine what as of to our a and

we're we to return we at confident to quarter, fourth growth got extremely to pipelines prove doing and about market typical busy look with is direction feel going really ability for and the through what what So us. the our were the and

of be on think to don't going with that owner-occupied focus there's I changes major in we C&I. any CRE loans. the going now. still focus going have to relationships projects But and We're categories to heavily on We're

that we you pretty going good of year back accelerate fourth So going the the we've and this or the -- we like growth quarter year. that a got third it's start to put if together, feel the confident so. end more all feel very certainly into But in

Matt Olney

$XX that, I on optimization million that the guess, Page And us then X, savings. you of those that Okay. those give pretax I give within X plan appreciate components us Drake. the

So implemented, those it X can like called X would give like improvement X% you were get they ROA. those sounds fourth the third-party Page take, 'XX. the interpretation? if bank those that items interpreting can It Argent of if right quarter I'm that the And that further X, it to by that implementation have you on ROA, remaining items X% that And get there items be the Is specific out. the the when right, implemented, of back or sounds beyond been not and X but benchmarking. then are and think

Drake Mills

to X-plus confident how is short Exactly ROA effort morale in not and work at period right. rate. really the the fourth pleased much highly and the very with culture plan, create run to intact, we're and ability be extremely execute a time successful. I'm implement our of and that I key but team in deliver mean in to only quarter of

us, that That's can So first to in above we tell, of and is the to a you peer the at back stay ability peer run our game. we -- for 'XX we, understand is But quarter tremendous continue moving to about deliver. to we ROA step. to But just get have confidence as fourth be XXX focus X% in rate is. what even the amount where were the had have when we

Martin Hall

a Drake's a about Matt, this is the under would to Lance. to point, of really I challenge we But Durbin economics I XXXX, it little color was smart a staying if strategy. think XXb. think add clearly, pushing back

So on of balance whole what for the be launch the January X around back thought at year, do mean, our to sheet we be was half able to positioned I forward. our to want

so year. we through in in came covered had million client about a deposits nice because the took through selection really growth and then on liquidity. of broker We It's increasing that deposit down a $XXX really about came those core deposits. that little for as that our up talked core paid And X% core about, Drake of bankers push good

in a really now positioned is place. we're where strong So

XXX% that ratio, bankers take ratio really now our I off -- arbitrarily XX% our ratio, mean, our we of with with the have on. but way with feel also CRE low of shackles then managed held amount we've we've liquidity, percentage the that mean we can ADC have I the loan-to-deposit portfolio. our a and tremendous with We runway brokered, we also a of

at you I the the I look at, when building. markets, our So solid, what opportunity at mean but pipeline is really looks look in which

For growth through us, see we clearly we the think loan XX% as to opportunity it. year do this

build. presently a that or obviously, bit of kick ramp a up. and doing on was on But little we sort We're sort of of that pipeline third slowdown quarter. the of had put of back because some seeing we're of get that that, the time construction Now one lending, doesn't places the to funding into takes that fourth

levers not to comment this like Also a to be I this the of the we clearly is for about us, go feel a project. kind top to back pulled. performer. is your we This quartile evolution I company mean want of

said those in we the profitability it I to you get mean dive mortgage on benchmarking so right. things enhanced one, as with going business into to deliver the And Argent, we're us with how but and project also the exactly then that. but really

I continued Southeast that That a of evolution growth East the just natural more is be and with this out for be us. out to Southeast, Texas to home the then expect pleased and But couldn't we really year. of run going high the strong turn team.

like feel then a of luxury the opportunities and administration, growth we hopefully, So got here, amount tremendous economy, tailwinds better we've new more Texas. of

Matt Olney

highlighted Okay. And on me, underway is Lance. a progress are that the of we've initiatives these. guess, good the and struck on already on I Appreciate one these cases, that in number many already made some I that, of this optimization, of that guess these things discussion

that's throughout think kind that the benefit how of benefit many of more help the the appreciate, I even Is be these of about . So could year loaded? you just you timing this annualized something Just of savings? $XX see called or to do back the that was million going when of timing us out. half guess, of

William Wallace

it's Wally. Matt,

the and the of of numbers X, in I'll those. have is -- the quarter. the items middle each that one consolidation So the the branch to Slide on go first benefit, occur -- branch annualized through going with The

the see during benefit the were The run quarter. of of fourth So quarter, you optimization taken profitability result were those second in see that we'll a that rate see optimization, banker numbers the quarter. half in you benefit actions and first full the should about that

the in already that's rate. of some So run

quarter. first So you'll in of see the full the that impact

quarter. We the of trade securities middle did fourth optimization the about the right

bit quarter, less sub than the that, February. that of bank-level rest first half in get quarter. a in The little the redeem benefit middle will So debt, we and will half in fourth the that we got about the of of

first So we'll expense that quarter, get in rate. excess then already the but it's -- we'll in the avoid run half of

really, cost. we an anticipating were avoidance that's So increased of was what an

cash opportunities the fourth that of those liquidity the the then quantify and management quarter. And late half occurred we -- latter

see that. full And of benefit there. some you'll the efforts there's ongoing So

So hopefully, we Hopefully, exceed as can that benefit well. that helps.

Matt Olney

Yes, I'll color I the there, now, . details, appreciate all I that's Wally. perfect. step the appreciate good but back guys.

Operator

comes James Our Michael Financial Inc. next question at Raymond from

Michael Rose

a color all recall surprised perform range give us follow-ups how margin, you Just deposit Wally, program expected the to core if if to the some efforts. betas, around of and you up, perform just the think, And the were the the a in you strong confidence things big the same were I drive little history growth just the I confidence up, on then ability couple line outlook that give on if way with the we'll we by I with think could can incentive Obviously, forward. a appreciate mentioned was the rolled as that out pretty correctly, help they'll you on which way you way to on down? move in

William Wallace

NII ALM better we system industry XXXX, based modeling on in it feel outsourced to Mike, we the In used were of understanding when for in-house. that, -- we a our brought have like deposit betas our Prior and new a we betas that trends. how So we trend. efforts were significantly invested

felt of deposit which we first brought deposit included data last deposits included We basically couple on Conservatively, a in lagged a our was pricing the guidance X On historical on moves. estimating I the way study the module, by an the a we investment betas year, essentially in, up. Fed all deposit software product type. my of on in like that

of -- thought on down. retail deposits we conservative deposit way the were quarter in the in were very we XX% would by to conscious and to X customer lag the So priced the were, those pricing our beta a fourth the historical In it try our and that and line kudos very were nonmaturity outcome which on deposits following presidents, staff being right is expectation our to a strategy, about specific industry. September underwent the market our we what fourth costs was to product our a with on that we the how was assume manage instead of in And trends quarter with deposits. line product betas cut,

we market you basis if would we trends I trends exclude you if points were brokered. growing tell not we we cuts have and not have just can were in only to XXX continue balance you from costs that think our sheet. we to we -- deposits experience with the And appropriately, should the dictated also to what the confidence our us be fact Obviously, I what liquidity first continue cut. deposit experience same that So only we're on if by to at these going were seeing look also that's of the able Fed manage give that Fed see our the

XXXX. that So confidence gives in think us for that combined, I'll I let model Lance. our

Martin Hall

is go way the that good about plan because was that a question behaviors. we drive that I'll Yes. incentive the really

areas. -- see created, kind is bankers detail really so you banker can out I'll strategy you X corporate you for some the around One of throughout. in the and If incentive give is But bank way implemented us are plan is -- ROA. kind paid the of how

quartile move we So that's we top as our this align into we the performance. important, to of make house driver bankers critically especially with want top forward the sure

the a we There and ratio metrics as again, critical we going of we was where into -- then weights. got areas self-fund for from specific they piece XXXX. more as the loan-to-deposit so caps us for be those were for use we desire. banker, emphasize loans market markets payouts not production it the to We We individual out work. focused to then a in was than around associated that there's XXXX. market we per And growth Secondly, markets the use those with it were we year, positioning paid which ROAs on were this this of market. production where for inside It deposits to because, in were of year. paid actually for we Those built

were aligned us certain appropriate pushing the credits and or or felt out with we bankers secondary that industries. the appropriate the So didn't structure repayment like have

behaviors XX-XX the XXXX, incentive create for the the be to shackles The caps spent back that. time the structure of getting sure like on that runway sort growth, deposits, of taking loans right payout plans, back week. of off shift opening up the bankers, lot will again, the and but do on a last and to some got on we we actually create through there making we've So aggressive also the feel sort then a

Michael Rose

very I business. switching you'd a thorough a have And mortgage one prepared seen us the lot maybe performance what you then on that there? Is know enhance to just business. One guys be some that give greater cards? actually can looking we've detail of banks get if some do out a warehouse, just thing the comments potential of -- That's in the And that. thing I you of in response. and restructure I was picked gears, on for I up Thanks know to

Drake Mills

the I a even that continue ago. years continue mean, we was is to in that focus off, shareholder love for relationships, first something the it as on, continue see will that ago, the the mean, same the to From we have Michael, warehouse, and customer slight say look and that don't I at in Yes, and base -- X I I warehouse, growth business, mortgage business the 'XX. we we could will we in business, shareholders we years mortgage think XX -- today

way, closely the we expectation our these what but we markets, deliver do to looking yet So would to be. return in products shareholders, respond responsibilities the right in very those are how at

efficient It's us. So commit running very through us to several business clients do just we but different how models. the to provide much in important for mortgages We early exactly that, making a to to it mortgages mortgage have our more way. -- and for is manage

Michael Rose

use reason this with even then of with. Does used here. debt, in buyback? and program, don't enhancement Very be retain you strong really recently. look one become will some hope Would buyback you just know sub be you look strong. for which mean, again just now you the purpose? to capital on then to guys have the I the it that And still is at still conversation helpful. M&A are Any last on you'll that And But for guys capital, Drake, point? administration part the capital like I profitability maybe that the looks wouldn't successful me I think -- new just maybe I

Drake Mills

place. Obviously, a have we plan do Yes. buyback in

where and opportunity the East for I we a and us. tool I think love opportunity we'll Southeast, growth I Nate to we that for a it's it's What the this, say capital utilization We have November Capital personally, have me that been for We and sub-debt I in where grow I East -- today in just through for a opportunities, team. the is Southeast has would significant see is great path Texas. a opportunity it's in capital and are another between hope $XX believe mean, million opportunities runway. is today. Texas. lift-outs.

but focus. XXb have XXb we're prepared forward. a crossing comfortable want is be mark, the only our capital that the do feel we capital to to We to regulators a very organization, go Also to not

strategy, say we I months. execution an So of how apply the I I to it XX lined think, capital, runway the would that's next if XX for up, from had organic growth

then going debt M&A these And growth from standpoint maximize there, to We that markets to also I with also build to relationships from redemption we drives organic in an have think the continue value. but are opportunities. of EPS sub more opportunities, continue

M&A with and creates, But I we we're our strategy. the expand whether way, M&A heats dislocation successful if and grow, opportunities we if win our really for or whether institution, up so either in opportunities, how I successful bullish lift-out continuing an through or am strategy. this positioned, on organic to lift-out opportunity, are M&A think M&A it's we're

I But pretty as we about capital day. runway for excess capital at look a us. pretty excited So how utilize

Operator

from KBW. Next . Woody question comes at

Wood Lay

comment. into been guidance? And the baked on successful team I in the want opportunity Is is very a out really that hiring XXXX? did mean on to that in expense I follow quick strategy. up hiring there past lift you've the

Drake Mills

We're guidance. our fit But they market us. business will our into look I see want is we significant going portfolio to the not for It's focus opportunity baked the grow based that tell way on their on you like. to allow expense our there what leaders loan

grown that to what that along I me where through means going that we If focused. opportunity. we've comes So is to our culture, our how we're are be heavily that that's going mean years, that's values increase. real C&I to there's a fits jump team

opportunity that's think for true heat starts dislocation as up. the to we us . So

Wood Lay

on wanted treatment the changes us touch could that ownership in how how will And it that the income XXXX. then It sounds to like it. will investment just go accounting and statement? Can the over impact remind I you Got Origin. mark XX%

William Wallace

to don't trip method we ownership, represent looking I to an accounting, is require that amendment prepared would our would get of standard we're Durbin that that it latter opportunity to the of way part owned we the XX% The would But where accounting ultimate portion when an think the in. that of earnings. when the their equity we're help impact offset Woody, kicks we essentially at answer question. of

impact. So of get you the help that of general sense a kind might earnings

Martin Hall

get bit about I'm in to to little jump this I timing valuation a they they -- probably get made Origin is, jump any at we've at going on when might bit Ardent incredibly available. has progress of would in of been The as identify say, ownership. seller the their on probably lot mean, possible. I may shares I I I want side point, helpful to helping this do of be a reality as current to would which point, back, about sorry. obviously, become little was Management the to wait too. us in on April. love XX% it a that, until we'll quick

. would be I probably QX think that a event. So would

Wood Lay

yes, and I be Durbin which to That's impact, XXXX a it on but then, was you will going the that guess thinking well, how of you're on helpful. question, sort half last touched Okay. about event? back And of just be any Durbin on update

William Wallace

Correct. Yes.

it annually. $XX million the And would in current estimates that'd Assuming assume our be quarter kick this we $X that, third which in, billion we to cross XXXX. roughly do of million impact $X.X pretax year,

Operator

Our Instructions] D.A. next at from Davidson. question [Operator Manuel comes

Manuel Navas

the this commentary appreciate morning. I

Is little Durbin, your if Just Argent's potentially fees understand wanted you to could color any replaces faster a in up on bit. that there that air. I an were But grow is growing assume follow it Argent other assumption also we a than can to up lot potential? what the there previously. is it add

William Wallace

clarify, their expectations meaningful And we I story. that that said tell growth we're extraordinary a And the not run Manuel, just then you could has to Ardent -- But is you I couldn't Durbin. what precedent, opportunity and say if past I company then investment. an future partially growth mean, offset could growth been are. . there be I don't from think

Manuel Navas

you you're with Okay. and of of Southeast that. How the there there. valuation. about around everyone moving Just ramp Alabama in the I parts lot that kind Can breaking of about do separate there, this year? a out appreciate near I direction, potential the color term? after appreciate And you Florida On your year April the getting expect timing the talk slide on the opportunity deck. last especially kind talk in and There's year? this a growth

Martin Hall

in the When that about expectations ended million deposits, did. Nate which we couldn't them and and million end be of this million in loan and for in I Yes. be he has year, on, they were about more I built. lead team We're $XX they the excited the at to year. growth. to came our very deposits $XX-ish think $XXX projecting close about to with clear deposits We loans

both be bit slower were permanent significant We Walton. in with hires. continued a and their enhanced deposits in pretty that Fort Mobile and loans little getting growth see you So in could locations

were run we where our perspective. slightly acquisition a has rate from So thought we and outstanding. behind from schedule But been client that the

is thought looks Their were and C&I, it would We going book portfolio knew grew this point, Pipeline be. what It's about exactly we about strong. building CRE. them. nice to loan strong. only profit that's really At be when XX% XX% looks XX% really we the to they they're what

sure we talk So to going think ROA, we about that Southeast I there. I is the past levers talked that's a pull key want X% on the giant what when to make -- about

Manuel Navas

Shifting that. over little bit I a to appreciate the NIM.

believe the quarter be to you of is negatively through year. outcome. answer describe Can NIM deposits, thinking kind wide I next but a range there's and just of it's me. biggest you bit for positively think can a fourth here the but by that of wildcards of for deposits, going pretty outcomes I -- walk NIM that kind

William Wallace

dollar that's also is Sure, Manuel. recognize a wide we range, a NII gave And growth we expectations. around you definitely do some which why guidance our

itself, the NIM that On liquidity significantly. impacts pretty

XX point very impact rate deposit quarter, in fourth from deposit the versus NIM roughly Fed in cuts. see in you We As reality. beta expectation swing beta a meaningful has the following the basis saw a quarters

biggest X So be impacts loan would deposit where growth settles the think, betas, liquidity mix, out. I and to actually that

we to growth expectation. you that up triangulate on where guidance your of think you'll in look hopefully, models NII help kind your end at So based

Operator

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

Matt Olney

guidance around last NII you similar of kind to back to Wally, for and the XXXX. question the

costs, X you cuts to around the And that X, outlook? appreciate think just Fed how I want be said it's assumes the to NII we year. would I X that. didn't whether or the impactful if to during sensitivity get that

yield the in that And second guess A the have few months. around then within I banks recent of this part outlook. curve their out is steeping called

CP the to Just for trying the is outlook NII? bank's appreciate curve to yield impactful how the

William Wallace

good Matt, it's question. a Thanks,

shape We stable. impacts the guidance. that curve The I'll of take curve remains assume the So part definitely the the second our of first. shape

that seen of on reprice out our we've portion they of the our loans and curve, as pricing in So impacts portfolio. XX-year volatility to X- that CRE the

impact ultimate side. absolutely on So performance the there the loan continued could pricing volatility

As and year, far first sensitive. half of as asset Fed the cuts, the we we in remain layer into

rates. stability the in the where time in the honesty, had or past of pretty we honestly, So and is consistently a that I us, would all message have the we've environment that for year think for think best system be period for I so

would but asset be are WIS [ ] that the X we sensitive. outcome, So

Operator

Q&A. This the to remarks. for any Drake back final concludes Handing Mills it

Drake Mills

a being while I period to plan, but able and a other proud I and pleased on short culture. to I'm want extremely this our strong hand, to make to strong build to be decisions very the thank think execute maintaining for morale what time, on call of of only team you, tough and everyone, the not today. in a

I'm drive through and looks are like. optimistic our traditionally But growth the I'm that So will grow in opportunities. get to I'm that organization our what to loans we 'XX very focused even are. other on very that analytics coming decisions back overall pleased and to pleased continue more focused a confidence with to story

your confidence in So call partnerships, Bank. Origin and your . being again, today. for you thank on you for thank Thank the you for

Operator

concludes call. Thank replay today's today's available Thank a great you, you. Evercall. This after and made shortly A day. have be will

Origin Bancorp (OBK) 23 Jan 252024 Q4 Earnings call transcript