NYSE$OBK

Origin Bancorp Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Net income decreased due to increases in provision expense driven by economic uncertainty surrounding the impact of COVID-19.

Origin Bancorp, Inc. reported a net income of $753,000 for Q1 2020, a decrease compared to the linked quarter and the quarter ended March 31, 2019. The decline was attributed to elevated provision expense due to economic uncertainty related to COVID-19.

  • Net income for the quarter ended March 31, 2020, was $753,000, compared to $12.8 million for the linked quarter and $14.2 million for the quarter ended March 31, 2019.
  • Diluted earnings per share for the quarter ended March 31, 2020, were $0.03, compared to $0.55 for the linked quarter and $0.60 for the quarter end March 31, 2019.
  • Net interest income was $42.8 million for the quarter ended March 31, 2020, compared to $44.1 million for the linked quarter and $42.0 million for the quarter ended March 31, 2019.
  • Provision expense was $18.5 million for the quarter ended March 31, 2020, compared to provision expense of $2.4 million for the linked quarter and $1.0 million for the quarter ended March 31, 2019.

Headline financials

Total Revenue

$55M

Previous: $53.6M+2.5%
EPS (adj)

$0.03

Previous: $0.60-95.0%
Net Interest Margin (FTE)

3.4%

No prior period
Efficiency Ratio (GAAP)

65.7%

No prior period
Common Equity Tier 1 Ratio

10.9%

No prior period
Tier 1 Capital Ratio

11.1%

No prior period
Total Capital Ratio

13.4%

No prior period
Tier 1 Leverage Ratio

10.7%

No prior period
Total Nonperforming Assets to Total Assets

0.7%

No prior period
Capital Expenditures

-$1.17M

Previous: -$5.06M+76.8%
Free Cash Flow

-$420K

Previous: $9.1M-104.6%
Net Income

$753K

Previous: $14.2M-94.7%
Operating Income

$20.6M

Previous: $38.7M-46.6%
Gross Profit

$36.4M

Previous: $52.6M-30.8%
Cash & Equivalents

$560M

Previous: $111M+403.6%
Total Assets

$6.05B

Previous: $4.87B+24.2%
Stock-Based Comp

$537K

Previous: $470K+14.3%

Revenue & EPS history

Origin · Revenue · Quarterly

$55M

Q1 2020+2.5%vs Q1 2019
Beat estimate in 8 of 11 quarters(73%)
ActualEstimate

Revenue by segment

Origin · $56.7M total across 4 segments · Q4 2019

  • Commercial real estate
    $52.3M
  • Investment securities-taxable
    $2.64M
  • Assets held in other financial institutions
    $976K
  • Investment securities-nontaxable
    $772K

Forward guidance

Origin is closely monitoring and reevaluating the ongoing economic effects of COVID-19 on the Company and its customers.

Tailwinds

  • Established a SBA Paycheck Protection Program task force and approved over $480 million in loans under this program as a result of the Coronavirus Aid, Relief and Economic Security (CARES) Act.
  • The implementation of Accounting Standards Update ("ASU") No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("CECL").
  • Offering forbearance (90 day extensions) and modification agreements to the Company's customers due to COVID-19.
  • Tracking pandemic impacted relationships and general economic conditions in our markets.
  • Increasing short term liquidity due to economic uncertainty, primarily through Federal Home Loan Bank ("FHLB") advances.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+0.5%

Avg return

Earnings day

+1.5%

Avg return

5 days after

+1.6%

Avg return

30 days after

57%

21 / 37 earnings

Positive

+6.0%

Q3 2023

Best reaction

-6.8%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+4.0%-1.9%+1.2%
Q4 2025+4.5%+8.7%+2.1%
Q3 2025-4.0%+1.3%+3.4%
Q1 2025+0.3%+0.6%+5.4%
Q4 2024+3.8%+9.7%+7.4%
Q3 2024-2.1%-0.4%+9.4%
Q2 2024-6.8%-7.1%-10.5%
Q1 2024+4.3%+1.5%+5.3%
Q4 2023-4.4%-3.3%-10.9%
Q3 2023+6.0%+9.2%+21.4%
Q2 2023-0.0%+0.0%-8.1%
Q1 2023-3.8%-6.1%-2.8%
Q4 2022+1.0%-4.5%-0.8%
Q3 2022-0.8%+2.4%+4.4%
Q2 2022+2.8%+3.4%+0.6%
Q1 2022-0.8%-4.3%-1.9%
Q4 2021-2.4%-0.4%+5.9%
Q3 2021-0.9%+2.1%-1.9%
Q2 2021+1.5%-1.4%+0.6%
Q1 2021+3.7%+6.2%+7.1%
Q4 2020+2.1%+7.7%+17.1%
Q3 2020-1.6%-0.7%+16.5%
Q2 2020+4.7%+9.2%+9.2%
Q1 2020+4.2%+10.8%-4.5%
Q4 2019-1.4%-1.7%-1.4%
Q3 2019+3.2%+6.0%+5.6%
Q2 2019-2.0%-0.9%-6.7%
Q1 2019+0.6%+1.5%-3.9%
Q4 2016-0.9%-0.4%-5.3%
Q4 2018-1.4%-1.8%+1.2%
Q3 2017-3.2%-5.0%-8.6%
Q3 2018+1.3%+6.1%+9.5%
Q2 2017+0.5%+0.5%+3.3%
Q2 2018+3.4%+2.7%+3.5%
Q1 2018+0.5%+1.5%-4.0%
Q4 2017+0.5%+1.5%-4.0%
Q1 2017+0.5%+1.5%-4.0%

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