Origin Bancorp, Inc. Reports Earnings for First Quarter 2023
04/26/2023 - 04:05 PM
RUSTON, La., April 26, 2023 (GLOBE NEWSWIRE) -- Origin Bancorp, Inc. (Nasdaq: OBNK) (“Origin” or the “Company”), the holding company for Origin Bank (the “Bank”), today announced net income of $24.3 million , or $0.79 diluted earnings per share for the quarter ended March 31, 2023, compared to net income of $29.5 million , or $0.95 diluted earnings per share, for the quarter ended December 31, 2022, and compared to net income of $20.7 million , or $0.87 diluted earnings per share for the quarter ended March 31, 2022. Adjusted pre-tax, pre-provision ("adjusted PTPP")(1) earnings were $36.6 million , for the quarter ended March 31, 2023.
“We manage this company for long-term success, and we are confident in both the strength of this company and the experience of our management team to continue to deliver meaningful value to our employees, customers, communities and shareholders,” said Drake Mills, chairman, president and CEO of Origin Bancorp, Inc. “Just as we have in the past, we are in a position to take advantage of the opportunities presented during these times.”
(1) Adjusted PTPP earnings is a non-GAAP financial measure, please see the last few pages of this document for a reconciliation of this alternative financial measure to its comparable GAAP measure.
Financial Highlights
Total loans held for investment ("LHFI"), excluding mortgage warehouse lines of credit, were $7.04 billion at March 31, 2023, reflecting an increase of $233.1 million , or 3.4% , compared to December 31, 2022. Total deposits were $8.17 billion at March 31, 2023, reflecting an increase of $398.6 million , or 5.1% , compared to December 31, 2022. Book value per common share was $32.25 at March 31, 2023, reflecting an increase of $1.35 , or 4.4% , compared to the linked quarter, and an increase of $3.75 , or 13.2% , compared to March 31, 2022. Tangible book value per common share(1) was $26.53 at March 31, 2023, reflecting an increase of $1.44 , or 5.7% , compared to the linked quarter, and an increase of $0.16 , or 0.6% , compared to March 31, 2022. Total nonperforming LHFI to total LHFI was 0.23% at March 31, 2023, compared to 0.14% at December 31, 2022, and 0.41% at March 31, 2022. The allowance for loan credit losses ("ALCL") to nonperforming LHFI was 538.75% at March 31, 2023, compared to 876.87% and 293.53% at December 31, 2022, and March 31, 2022, respectively. At March 31, 2023, and December 31, 2022, Company level common equity Tier 1 capital to risk-weighted assets was 11.08% , and 10.93% , respectively, the Tier 1 leverage ratio was 9.79% and 9.66% , respectively, and the total capital ratio was 14.30% and 14.23% , respectively. Tangible common equity to tangible assets(1) was 8.02% at March 31, 2023, compared to 8.11% at December 31, 2022, and 7.77% at March 31, 2022. LHFI, excluding mortgage warehouse lines of credit, to deposits was 86.1% at March 31, 2023, compared to 87.5% at December 31, 2022, and 69.3% at March 31, 2022. Cash and liquid securities as a percentage of total assets was 14.3% at March 31, 2023, compared to 12.1% and 23.0% at December 31, 2022, and March 31, 2022, respectively. (1) Tangible book value per common share and tangible common equity to tangible assets are non-GAAP financial measures, please see the last few pages of this document for a reconciliation of these alternative financial measures to their comparable GAAP measures.
Results of Operations for the Three Months Ended March 31, 2023
Net Interest Income and Net Interest Margin
Net interest income for the quarter ended March 31, 2023, was $77.1 million , a decrease of $7.6 million , or 9.0% , compared to the linked quarter, due to a $16.4 million increase in total interest expense, partially offset by an $8.8 million increase in interest income. Increases in interest rates increased our total deposit interest expense and FHLB advances and other borrowings interest expense by $12.9 million and $2.4 million , respectively. Offsetting this increase in deposit interest expense, was a $5.2 million increase in interest income earned on total LHFI due to rate increases, during the current quarter compared to the linked quarter. Increases in interest rates drove a $5.7 million increase in total interest income, while increases in average interest-earning asset balances drove a $3.1 million increase in total interest income.
The net purchase accounting accretion declined to $1.7 million , a decrease of $194,000 , for the three months ended March 31, 2023, compared to the three months ended December 31, 2022. The table below presents the estimated loan and deposit accretion and subordinated indebtedness amortization resulting from merger purchase accounting adjustments for the periods shown.
Loan Accretion Income Deposit Accretion Income Subordinated Indebtedness Amortization Expense Total Impact to Net Interest Income 3Q2022 $ 1,187 $ 238 $ (10 ) $ 1,415 4Q2022 1,653 259 (15 ) 1,897 1Q2023 1,617 101 (15 ) 1,703 Total actual realized net purchase accounting accretion $ 4,457 $ 598 $ (40 ) $ 5,015 Remaining 2023 $ 406 $ 108 $ (47 ) $ 467 Thereafter 223 23 (706 ) (460 ) Total remaining net purchase accounting accretion at March 31, 2023 $ 629 $ 131 $ (753 ) $ 7
The Federal Reserve Board sets various benchmark rates, including the Federal Funds rate, and thereby influences the general market rates of interest, including the loan and deposit rates offered by financial institutions. In early 2020, the Federal Reserve lowered the target rate range to 0.00% to 0.25% . These rates remained in effect throughout all of 2021. On March 17, 2022, the target rate range was increased to 0.25% to 0.50% , then subsequently increased six more times during 2022 and two more times during 2023, with the most recent and current Federal Funds target rate range being set on March 2, 2023, at 4.75% to 5.00% . By March 31, 2023, the Federal Funds target rate range had increased 450 basis points from March 17, 2022, and in order to remain competitive as market interest rates increased, interest rates paid on deposits have also increased.
The average rate on interest-bearing deposits increased to 2.49% for the quarter ended March 31, 2023, compared to 1.54% for the quarter ended December 31, 2022, and average interest-bearing deposit balances increased to $5.63 billion from $5.12 billion for the linked quarter. Average balances in savings and interest-bearing transaction accounts increased $285.5 million compared to the linked period, while average time deposit balance increased $223.4 million compared to the three months ended December 31, 2022. Offsetting these increases was a decline of $201.1 million in average noninterest-bearing deposit balances.
The average rate on FHLB advances and other borrowings increased to 5.21% for the quarter ended March 31, 2023, compared to 3.02% for the linked quarter. Additionally, the yield on LHFI was 6.03% and 5.63% for the quarter ended March 31, 2023, and December 31, 2022, respectively, and average LHFI balances increased to $7.15 billion for the quarter ended March 31, 2023, compared to $6.97 billion for the linked quarter. The yield on LHFI, excluding the purchase accounting accretion, was 5.94% for the quarter ended March 31, 2023, compared to 5.53% for the linked quarter.
The Company made a strategic decision to borrow approximately $700.0 million and hold excess cash for contingency liquidity for the majority of the month ended March 31, 2023. This excess liquidity was held at a weighted-average rate of 5.03% and added $1.9 million in interest expense for the quarter ended March 31, 2023, which negatively impacted the fully tax-equivalent net interest margin ("NIM") by six basis points.
The fully tax-equivalent NIM was impacted by margin compression as rates on interest-bearing liabilities rose faster than yields on interest-earning assets during the current quarter. We typically lag market deposit rate increases. The fully tax-equivalent NIM was 3.44% for the quarter ended March 31, 2023, a 37 basis point decrease and a 58 basis point increase compared to the linked quarter and the prior year quarter, respectively. The yield earned on interest-earning assets for the quarter ended March 31, 2023, was 5.31% , an increase of 35 and 218 basis points compared to the linked quarter and the prior year quarter, respectively. The average rate paid on total deposits for the quarter ended March 31, 2023, was 1.75% , representing a 73 and a 158 basis point increase compared to the linked quarter and the prior year quarter. The average rate paid on FHLB and other borrowings also increased to 5.21% , reflecting a 219 and 354 basis point increase compared to the linked quarter and prior year quarter, respectively. The net increase in accretion income due to the BTH merger increased the fully tax-equivalent NIM by approximately eight basis points for both the current quarter and the linked quarter.
Credit Quality
The table below includes key credit quality information:
At and For the Three Months Ended $ Change % Change (Dollars in thousands, unaudited) March 31, 2023 December 31, 2022 March 31, 2022 Linked Quarter Linked Quarter Past due LHFI $ 11,498 $ 10,932 $ 21,753 $ 566 5.2 % ALCL 92,008 87,161 62,173 4,847 5.6 Classified loans 86,170 74,203 70,379 11,967 16.1 Total nonperforming LHFI 17,078 9,940 21,181 7,138 71.8 Provision for credit losses 6,197 4,624 (327 ) 1,573 34.0 Net charge-offs 1,311 180 1,754 1,131 628.3 Credit quality ratios (1) : ALCL to nonperforming LHFI 538.75 % 876.87 % 293.53 % N/A -33812 bp ALCL to total LHFI 1.25 1.23 1.20 N/A 2 bp ALCL to total LHFI, adjusted(2) 1.30 1.28 1.33 N/A 2 bp Nonperforming LHFI to LHFI 0.23 0.14 0.41 N/A 9 bp Net charge-offs to total average LHFI (annualized) 0.07 0.01 0.14 N/A 6 bp
___________________________(1) Please see the Loan Data schedule at the back of this document for additional information.(2) The ALCL to total LHFI, adjusted, is calculated at March 31, 2023, and December 31, 2022, by excluding the ALCL for warehouse loans from the total LHFI ALCL in the numerator and excluding the warehouse loans from the LHFI in the denominator. For the periods prior to September 30, 2022, it is calculated by excluding the ALCL for warehouse loans from the total LHFI ALCL in the numerator and excluding the PPP and warehouse loans from the LHFI in the denominator. Due to their low-risk profile, mortgage warehouse loans require a disproportionately low allocation of the ALCL, and PPP loans are fully guaranteed by the SBA.
The Company recorded a credit loss provision of $6.2 million during the quarter ended March 31, 2023, compared to $4.6 million recorded during the linked quarter. The increase is primarily due to additional loan growth of $285.8 million during the current quarter.
The ALCL to nonperforming LHFI decreased to 538.8% at March 31, 2023, compared to 876.9% at December 31, 2022, driven by an increase of $7.1 million in the Company’s nonperforming LHFI, offset by an increase of $4.8 million in the ALCL for the quarter. The increase in nonperforming LHFI at March 31, 2023, compared to the linked quarter is primarily due to six loan relationships, five of which were acquired relationships. Quarterly net charge-offs increased to $1.3 million from $180,000 for the linked quarter, primarily due to a $1.9 million recovery on a commercial and industrial loan during the linked quarter, with no such recovery during the current quarter. Net charge-offs to total average LHFI (annualized) increased to 0.07% for the quarter ending March 31, 2023, compared to 0.01% for the linked quarter. Classified loans increased $12.0 million at March 31, 2023, compared to the linked quarter, and represented 1.17% of LHFI, at March 31, 2023, compared to 1.05% at December 31, 2022. The ALCL to total LHFI increased to 1.25% at March 31, 2023, compared to 1.23% at December 31, 2022.
Noninterest Income
Noninterest income for the quarter ended March 31, 2023, was $16.4 million , an increase of $3.0 million , or 22.0% , from the linked quarter. The increase from the linked quarter was primarily driven by increases of $2.0 million and $580,000 on the insurance commission and fee income and mortgage banking revenue, respectively.
The increase in insurance commission and fee income was primarily driven by the increase in annual contingency fee income recognized in the first quarter.
The increase in mortgage banking revenue was primarily due to a stronger production pipeline during the current quarter, compared to the quarter ended December 31, 2022.
Noninterest Expense
Noninterest expense for the quarter ended March 31, 2023, was $56.8 million , a decrease of $494,000 compared to the linked quarter. The decrease from the linked quarter was primarily due to a $1.2 million decrease in merger-related expense, partially offset by an increase of $640,000 in occupancy and equipment, net.
Merger-related expenses declined $1.2 million compared to the quarter ended December 31, 2022, primarily due to expenses associated with the BTH merger incurred during the linked quarter, with no merger expenses incurred during the current quarter.
Occupancy and equipment, net expense increased $640,000 during the current quarter compared to the linked quarter, primarily due to the planned addition of one new banking location and one mortgage production office during the current quarter. Additionally, higher property taxes drove an increase of $182,000 and ATM maintenance expense increased $118,000 during the current quarter compared to the linked quarter.
Income Taxes
The effective tax rate was 20.5% during the quarter ended March 31, 2023, compared to 18.8% during the linked quarter and 20.4% during the quarter ended March 31, 2022. The effective tax rate for the current quarter was higher due to increased state tax compared to the linked quarter.
Financial Condition
Total Assets
Total assets exceeded $10.00 billion at March 31, 2023, primarily due to the additional temporary cash added in March 2023, as noted above. Loans
Total LHFI at March 31, 2023, were $7.38 billion , an increase of $285.8 million , or 4.0% , from $7.09 billion at December 31, 2022, and an increase of $2.18 billion , or 42.0% , compared to March 31, 2022. Total real estate loans were $4.92 billion at March 31, 2023, an increase of $194.7 million , or 4.1% , from the linked quarter, with residential real estate loan growth contributing $111.0 million of the total real estate loan growth. Mortgage warehouse lines of credit totaled $337.5 million at March 31, 2023, an increase of $52.7 million , or 18.5% , compared to the linked quarter. All loan categories experienced increases in loan balances during the current quarter compared to the linked quarter with the exception of consumer loans. Securities
Total securities at March 31, 2023, were $1.61 billion , a decrease of $50.2 million , or 3.0% , compared to the linked quarter and a decrease of $308.6 million , or 16.1% , compared to March 31, 2022. The decrease was due to sales, maturities, scheduled principal payments, and calls. Securities of $38.7 million primarily municipal securities, were sold during the current quarter and the Company realized a net gain of $144,000 on the sale. Accumulated other comprehensive loss, net of taxes, primarily associated with the AFS portfolio, was $138.5 million at March 31, 2023, an improvement of $21.4 million during the current quarter. The weighted average effective duration for the total securities portfolio was 4.17 years as of March 31, 2023, compared to 4.24 years as of December 31, 2022. Deposits
Total deposits at March 31, 2023, were $8.17 billion , an increase of $398.6 million , or 5.1% , compared to the linked quarter, and represented an increase of $1.41 billion , or 20.8% , from March 31, 2022. The increase in the current quarter compared to the linked quarter was primarily due to increases of $283.8 million and $228.4 million in brokered deposits and money market deposits, respectively, which was partially offset by a $234.7 million decrease in noninterest-bearing deposits. During the month of February 2023, we added $275.0 million of brokered deposits as a less expensive alternative to FHLB advances. For the quarter ended March 31, 2023, average noninterest-bearing deposits as a percentage of total average deposits were 29.8% , compared to 33.6% and 33.0% for the quarter ended December 31, 2022, and March 31, 2022, respectively. Uninsured/uncollateralized deposits totaled $3.09 billion at March 31, 2023, compared to $3.43 billion at December 31, 2022, representing 37.8% and 44.1% of total deposits at March 31, 2023 and December 31, 2022, respectively. Borrowings
FHLB advances and other borrowings at March 31, 2023, were $875.5 million , an increase of $236.3 million , or 37.0% , compared to the linked quarter and represented an increase of $569.9 million , or 186.5% , from March 31, 2022. The increase was due to a strategic decision in early March 2023 to borrow $700.0 million and hold excess cash for contingency liquidity. Average FHLB advances were $432.2 million for the quarter ended March 31, 2023, a decrease of $79.7 million from $511.9 million for the quarter ended December 31, 2022 and an increase of $255.0 million from March 31, 2022. Stockholders’ Equity
Stockholders’ equity was $992.6 million at March 31, 2023, an increase of $42.6 million , or 4.5% , compared to $949.9 million at December 31, 2022, and an increase of $315.7 million , or 46.6% , compared to $676.9 million , at March 31, 2022. The increase in stockholders’ equity from the linked quarter is primarily due to net income of $24.3 million and a decrease in accumulated other comprehensive loss, net of tax, of $21.4 million during the current quarter. The increase from March 31, 2022, is primarily associated with the BTH merger, which drove a $306.3 million increase in stockholders' equity and net income retained during the intervening period. The increase was partially offset by other comprehensive loss, net of tax and dividends declared during the year. Confere nce Call
Origin will hold a conference call to discuss its first quarter 2023 results on Thursday, April 27, 2023, at 8:00 a.m. Central Time (9:00 a.m. Eastern Time). To participate in the live conference call, please dial +1 (929) 272-1574 (U.S. Local / International); +1 (800) 528-1066 (U.S. Toll Free), enter Conference ID: 15370 and request to be joined into the Origin Bancorp, Inc. (OBNK) call. A simultaneous audio-only webcast may be accessed via Origin’s website at www.origin.bank under the investor relations, News & Events, Events & Presentations link or directly by visiting https://dealroadshow.com/e/ORIGINQ123 .
If you are unable to participate during the live webcast, the webcast will be archived on the Investor Relations section of Origin’s website at www.origin.bank , under Investor Relations, News & Events, Events & Presentations.
About Origin
Origin Bancorp, Inc. is a financial holding company headquartered in Ruston, Louisiana. Origin’s wholly owned bank subsidiary, Origin Bank, was founded in 1912 in Choudrant, Louisiana. Deeply rooted in Origin’s history is a culture committed to providing personalized, relationship banking to businesses, municipalities, and personal clients to enrich the lives of the people in the communities it serves. Origin provides a broad range of financial services and currently operates 60 banking centers located in Dallas/Fort Worth, East Texas, Houston, North Louisiana and Mississippi. For more information, visit www.origin.bank .
Non-GAAP Financial Measures
Origin reports its results in accordance with accounting principles generally accepted in the United States of America ("GAAP"). However, management believes that certain supplemental non-GAAP financial measures may provide meaningful information to investors that is useful in understanding Origin's results of operations and underlying trends in its business. However, non-GAAP financial measures are supplemental and should be viewed in addition to, and not as an alternative for, Origin's reported results prepared in accordance with GAAP. The following are the non-GAAP measures used in this release: adjusted net income, adjusted PTPP earnings, adjusted diluted EPS, NIM-FTE, adjusted, adjusted ROAA, adjusted PTPP ROAA, adjusted ROAE, adjusted PTPP ROAE, tangible book value per common share, adjusted tangible book value per common share, tangible common equity to tangible assets, ROATCE and adjusted ROATCE and adjusted efficiency ratio.
Please see the last few pages of this release for reconciliations of non-GAAP measures to the most directly comparable financial measures calculated in accordance with GAAP.
Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information regarding Origin’s future financial performance, business and growth strategy, projected plans and objectives, and any expected purchases of its outstanding common stock, and related transactions and other projections based on macroeconomic and industry trends, including changes to interest rates by the Federal Reserve and the resulting impact on Origin’s results of operations, estimated forbearance amounts and expectations regarding the Company’s liquidity, including in connection with advances obtained from the FHLB, which are all subject to change and may be inherently unreliable due to the multiple factors that impact broader economic and industry trends, and any such changes may be material. Such forward-looking statements are based on various facts and derived utilizing important assumptions and current expectations, estimates and projections about Origin and its subsidiaries, any of which may change over time and some of which may be beyond Origin’s control. Statements or statistics preceded by, followed by or that otherwise include the words “assumes,” “anticipates,” “believes,” “estimates,” “expects,” “foresees,” “intends,” “plans,” “projects,” and similar expressions or future or conditional verbs such as “could,” “may,” “might,” “should,” “will,” and “would” and variations of such terms are generally forward-looking in nature and not historical facts, although not all forward-looking statements include the foregoing words. Further, certain factors that could affect Origin’s future results and cause actual results to differ materially from those expressed in the forward-looking statements include, but are not limited to: potential impacts of the recent adverse developments in the banking industry highlighted by high-profile bank failures, including impacts on customer confidence, deposit outflows, liquidity and the regulatory response thereto, the impact of current and future economic conditions generally and in the financial services industry, nationally and within Origin’s primary market areas, including the effects of declines in the real estate market, high unemployment rates, inflationary pressures, elevated interest rates and slowdowns in economic growth, as well as the financial stress on borrowers and changes to customer and client behavior as a result of the foregoing, deterioration of Origin’s asset quality; factors that can impact the performance of Origin’s loan portfolio, including real estate values and liquidity in Origin’s primary market areas; the financial health of Origin’s commercial borrowers and the success of construction projects that Origin finances; changes in the value of collateral securing Origin’s loans; developments in our mortgage banking business, including loan modifications, general demand, and the effects of judicial or regulatory requirements or guidance; Origin’s ability to anticipate interest rate changes and manage interest rate risk, (including the impact of higher interest rates on macroeconomic conditions, competition, and the cost of doing business); the effectiveness of Origin’s risk management framework and quantitative models; Origin’s inability to receive dividends from Origin Bank and to service debt, pay dividends to Origin’s common stockholders, repurchase Origin’s shares of common stock and satisfy obligations as they become due; the impact of labor pressures; changes in Origin’s operation or expansion strategy or Origin’s ability to prudently manage its growth and execute its strategy; changes in management personnel; Origin’s ability to maintain important customer relationships, reputation or otherwise avoid liquidity risks; increasing costs as Origin grows deposits; operational risks associated with Origin’s business; volatility and direction of market interest rates; significant turbulence or a disruption in the capital or financial markets and the effect of a fall in stock market prices on our investment securities; increased competition in the financial services industry, particularly from regional and national institutions, as well as from fintech companies; difficult market conditions and unfavorable economic trends in the United States generally, and particularly in the market areas in which Origin operates and in which its loans are concentrated; an increase in unemployment levels and slowdowns in economic growth; Origin’s level of nonperforming assets and the costs associated with resolving any problem loans including litigation and other costs; the credit risk associated with the substantial amount of commercial real estate, construction and land development, and commercial loans in Origin’s loan portfolio; changes in laws, rules, regulations, interpretations or policies relating to financial institutions, and potential expenses associated with complying with such regulations; periodic changes to the extensive body of accounting rules and best practices; further government intervention in the U.S. financial system; a deterioration of the credit rating for U.S. long-term sovereign debt, actions that the U.S. government may take to avoid exceeding the debt ceiling, or uncertainties surrounding the debt ceiling and the federal budget; compliance with governmental and regulatory requirements, including the Dodd-Frank Wall Street Reform and Consumer Protection Act and others relating to banking, consumer protection, securities, and tax matters; Origin’s ability to comply with applicable capital and liquidity requirements, including its ability to generate liquidity internally or raise capital on favorable terms, including continued access to the debt and equity capital markets; changes in the utility of Origin’s non-GAAP liquidity measurements and its underlying assumptions or estimates; uncertainty regarding the transition away from the London Interbank Offered Rate and the impact of any replacement alternatives such as the Secured Overnight Financing Rate on Origin’s business; possible changes in trade, monetary and fiscal policies, laws and regulations and other activities of governments, agencies and similar organizations; natural disasters and adverse weather events, acts of terrorism, an outbreak of hostilities (including the impacts related to or resulting from Russia's military action in Ukraine, including the imposition of additional sanctions and export controls, as well as the broader impacts to financial markets and the global macroeconomic and geopolitical environments), regional or national protests and civil unrest (including any resulting branch closures or property damage), widespread illness or public health outbreaks or other international or domestic calamities, and other matters beyond Origin’s control; and system failures, cybersecurity threats or security breaches and the cost of defending against them. For a discussion of these and other risks that may cause actual results to differ from expectations, please refer to the sections titled “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in Origin’s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission and any updates to those sections set forth in Origin’s subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. If one or more events related to these or other risks or uncertainties materialize, or if Origin’s underlying assumptions prove to be incorrect, actual results may differ materially from what Origin anticipates. Accordingly, you should not place undue reliance on any forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and Origin does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.
New risks and uncertainties arise from time to time, and it is not possible for Origin to predict those events or how they may affect Origin. In addition, Origin cannot assess the impact of each factor on Origin’s business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. All forward-looking statements, expressed or implied, included in this communication are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that Origin or persons acting on Origin’s behalf may issue. Annualized, pro forma, adjusted, projected, and estimated numbers are used for illustrative purposes only, are not forecasts, and may not reflect actual results.
Contact:
Investor Relationschris@origin.bank
Media Contactrkilpatrick@origin.bank
Origin Bancorp, Inc. Selected Quarterly Financial Data Three Months Ended March 31, 2023 December 31, 2022 September 30, 2022 June 30, 2022 March 31, 2022 Income statement and share amounts (Dollars in thousands, except per share amounts, unaudited) Net interest income $ 77,147 $ 84,749 $ 78,523 $ 59,504 $ 52,502 Provision for credit losses 6,197 4,624 16,942 3,452 (327 ) Noninterest income 16,384 13,429 13,723 14,216 15,906 Noninterest expense 56,760 57,254 56,241 44,150 42,774 Income before income tax expense 30,574 36,300 19,063 26,118 25,961 Income tax expense 6,272 6,822 2,820 4,807 5,278 Net income $ 24,302 $ 29,478 $ 16,243 $ 21,311 $ 20,683 Adjusted net income(1) $ 24,188 $ 30,409 $ 31,087 $ 21,949 $ 21,134 Adjusted PTPP earnings ("Adjusted PTPP")(1) 36,627 42,103 39,905 30,377 26,205 Basic earnings per common share 0.79 0.96 0.57 0.90 0.87 Diluted earnings per common share 0.79 0.95 0.57 0.90 0.87 Adjusted diluted earnings per common share(1) 0.78 0.99 1.09 0.92 0.89 Dividends declared per common share 0.15 0.15 0.15 0.15 0.13 Weighted average common shares outstanding - basic 30,742,902 30,674,389 28,298,984 23,740,611 23,700,550 Weighted average common shares outstanding - diluted 30,882,156 30,867,511 28,481,619 23,788,164 23,770,791 Balance sheet data Total LHFI $ 7,375,823 $ 7,090,022 $ 6,882,681 $ 5,528,093 $ 5,194,406 Total assets 10,358,516 9,686,067 9,462,639 8,111,524 8,112,295 Total deposits 8,174,310 7,775,702 7,777,327 6,303,158 6,767,179 Total stockholders’ equity 992,587 949,943 907,024 646,373 676,865 Performance metrics and capital ratios Yield on LHFI 6.03 % 5.63 % 4.94 % 4.26 % 4.08 % Yield on interest-earnings assets 5.31 4.96 4.23 3.53 3.13 Cost of interest-bearing deposits 2.49 1.54 0.64 0.29 0.26 Cost of total deposits 1.75 1.02 0.41 0.19 0.17 NIM - fully tax equivalent ("FTE") 3.44 3.81 3.68 3.23 2.86 NIM - FTE, adjusted(2) 3.36 3.73 3.61 3.20 2.76 Return on average assets (annualized) ("ROAA") 1.01 1.23 0.70 1.08 1.04 Adjusted ROAA (annualized)(1) 1.00 1.27 1.34 1.11 1.07 Adjusted PTPP ROAA (annualized)(1) 1.52 1.75 1.72 1.53 1.32 Return on average stockholders’ equity (annualized) ("ROAE") 10.10 12.80 6.86 12.81 11.61 Adjusted ROAE (annualized)(1) 10.05 13.20 13.14 13.19 11.86 Adjusted PTPP ROAE (annualized)(1) 15.22 18.28 16.86 18.26 14.71 Book value per common share(3) $ 32.25 $ 30.90 $ 29.58 $ 27.15 $ 28.50 Tangible book value per common share (1)(3) 26.53 25.09 23.41 25.05 26.37 Adjusted tangible book value per common share(1) 31.03 30.29 29.13 29.92 29.15 Return on average tangible common equity ("ROATCE")(1) 12.34 % 16.00 % 8.03 % 13.86 % 12.49 % Adjusted return on average tangible common equity ("adjusted ROATCE")(1) 12.29 16.50 15.38 14.27 12.77 Efficiency ratio(4) 60.69 58.32 60.97 59.89 62.53 Adjusted efficiency ratio(1) 58.64 53.06 52.16 54.10 58.93 (Dollars in thousands, except per share amounts, unaudited) Common equity tier 1 to risk-weighted assets(5) 11.08 % 10.93 % 10.51 % 10.81 % 11.20 % Tier 1 capital to risk-weighted assets(5) 11.27 11.12 10.70 10.95 11.35 Total capital to risk-weighted assets(5) 14.30 14.23 13.79 14.09 14.64 Tier 1 leverage ratio(5) 9.79 9.66 9.63 9.09 8.84
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(1) Adjusted net income, adjusted PTPP earnings, adjusted diluted earnings per common share, adjusted ROAA, adjusted PTPP ROAA, adjusted ROAE, adjusted PTPP ROAE, tangible book value per common share, adjusted tangible book value per common share, ROATCE, adjusted ROATCE and adjusted efficiency ratio are either non-GAAP financial measures or use a non-GAAP contributor in the formula. For a reconciliation of these alternative financial measures to their comparable GAAP measures, please see the last few pages of this release.(2) NIM - FTE, adjusted, is a non-GAAP financial measure and is calculated for the quarters ended March 31, 2023, December 31, 2022, and September 30, 2022, by removing the net purchase accounting accretion from the net interest income. For periods prior to September 30, 2022, it is calculated by removing average PPP loans from average interest-earning assets and removing the associated interest income (net of 35 basis points assumed cost of funds on average PPP loan balances) from net interest income. (3) An increase in accumulated other comprehensive loss negatively impacted total stockholders' equity, tangible common equity, book value and tangible book value per common share primarily due to the movement of the short end of the yield curve that occurred during the first three quarters of 2022 and its impact on our investment portfolio.(4) Calculated by dividing noninterest expense by the sum of net interest income plus noninterest income.(5) March 31, 2023, ratios are estimated and calculated at the Company level, which is subject to the capital adequacy requirements of the Federal Reserve Board.
Origin Bancorp, Inc. Consolidated Quarterly Statements of Income Three Months Ended March 31, 2023 December 31, 2022 September 30, 2022 June 30, 2022 March 31, 2022 Interest and dividend income (Dollars in thousands, except per share amounts, unaudited) Interest and fees on loans $ 106,496 $ 99,178 $ 79,803 $ 55,986 $ 51,183 Investment securities-taxable 8,161 7,765 7,801 7,116 5,113 Investment securities-nontaxable 1,410 2,128 2,151 1,493 1,400 Interest and dividend income on assets held in other financial institutions 4,074 2,225 1,482 1,193 587 Total interest and dividend income 120,141 111,296 91,237 65,788 58,283 Interest expense Interest-bearing deposits 34,557 19,820 7,734 3,069 2,886 FHLB advances and other borrowings 5,880 4,208 2,717 1,392 1,094 Subordinated indebtedness 2,557 2,519 2,263 1,823 1,801 Total interest expense 42,994 26,547 12,714 6,284 5,781 Net interest income 77,147 84,749 78,523 59,504 52,502 Provision for credit losses 6,197 4,624 16,942 3,452 (327 ) Net interest income after provision for credit losses 70,950 80,125 61,581 56,052 52,829 Noninterest income Insurance commission and fee income 7,011 5,054 5,666 5,693 6,456 Service charges and fees 4,571 4,663 4,734 4,274 3,998 Mortgage banking revenue (loss) 1,781 1,201 (929 ) 2,354 4,096 Other fee income 942 1,132 1,162 638 598 Swap fee income 384 292 25 1 139 Gain on sales of securities, net 144 — 1,664 — — Limited partnership investment income (loss) 66 (230 ) 112 282 (363 ) Gain (loss) on sales and disposals of other assets, net 63 34 70 (279 ) — Other income 1,422 1,283 1,219 1,253 982 Total noninterest income 16,384 13,429 13,723 14,216 15,906 Noninterest expense Salaries and employee benefits 33,731 33,339 31,834 27,310 26,488 Occupancy and equipment, net 6,503 5,863 5,399 4,514 4,427 Data processing 2,916 2,868 2,689 2,413 2,486 Intangible asset amortization 2,553 2,554 1,872 525 537 Office and operations 2,303 2,277 2,121 2,162 1,560 Professional services 1,525 1,145 1,188 420 1,060 Loan-related expenses 1,465 1,676 1,599 1,517 1,305 Advertising and marketing 1,456 1,505 1,196 859 871 Electronic banking 1,009 1,058 1,087 896 917 Franchise tax expense 975 1,017 957 838 770 Regulatory assessments 951 1,242 877 802 626 Communications 384 434 279 252 281 Merger-related expense — 1,179 3,614 807 571 Other expenses 989 1,097 1,529 835 875 Total noninterest expense 56,760 57,254 56,241 44,150 42,774 Income before income tax expense 30,574 36,300 19,063 26,118 25,961 Income tax expense 6,272 6,822 2,820 4,807 5,278 Net income $ 24,302 $ 29,478 $ 16,243 $ 21,311 $ 20,683 Basic earnings per common share $ 0.79 $ 0.96 $ 0.57 $ 0.90 $ 0.87 Diluted earnings per common share 0.79 0.95 0.57 0.90 0.87
Origin Bancorp, Inc. Consolidated Balance Sheets (Dollars in thousands) March 31, 2023 December 31, 2022 September 30, 2022 June 30, 2022 March 31, 2022 Assets (Unaudited) (Unaudited) (Unaudited) (Unaudited) Cash and due from banks $ 117,309 $ 150,180 $ 118,505 $ 123,499 $ 129,825 Interest-bearing deposits in banks 707,802 208,792 181,965 200,421 454,619 Total cash and cash equivalents 825,111 358,972 300,470 323,920 584,444 Securities: AFS 1,591,334 1,641,484 1,672,170 1,804,370 1,905,687 Held to maturity, net of allowance for credit losses 11,191 11,275 11,285 4,288 4,831 Securities carried at fair value through income 6,413 6,368 6,347 6,630 7,058 Total securities 1,608,938 1,659,127 1,689,802 1,815,288 1,917,576 Non-marketable equity securities held in other financial institutions 77,036 67,378 53,899 76,822 45,242 Loans held for sale 29,143 49,957 59,714 62,493 80,295 Loans 7,375,823 7,090,022 6,882,681 5,528,093 5,194,406 Less: ALCL 92,008 87,161 83,359 63,123 62,173 Loans, net of ALCL 7,283,815 7,002,861 6,799,322 5,464,970 5,132,233 Premises and equipment, net 104,047 100,201 99,291 81,950 80,421 Mortgage servicing rights 18,261 20,824 21,654 22,127 21,187 Cash surrender value of bank-owned life insurance 39,253 39,040 38,885 38,742 38,547 Goodwill 128,679 128,679 136,793 34,153 34,153 Other intangible assets, net 47,277 49,829 52,384 15,900 16,425 Accrued interest receivable and other assets 196,956 209,199 210,425 175,159 161,772 Total assets $ 10,358,516 $ 9,686,067 $ 9,462,639 $ 8,111,524 $ 8,112,295 Liabilities and Stockholders’ Equity Noninterest-bearing deposits $ 2,247,782 $ 2,482,475 $ 2,667,489 $ 2,214,919 $ 2,295,682 Interest-bearing deposits 4,779,023 4,505,940 4,361,423 3,598,417 3,947,714 Time deposits 1,147,505 787,287 748,415 489,822 523,783 Total deposits 8,174,310 7,775,702 7,777,327 6,303,158 6,767,179 FHLB advances and other borrowings 875,502 639,230 450,456 894,581 305,560 Subordinated indebtedness 201,845 201,765 201,687 157,540 157,478 Accrued expenses and other liabilities 114,272 119,427 126,145 109,872 205,213 Total liabilities 9,365,929 8,736,124 8,555,615 7,465,151 7,435,430 Stockholders’ equity: Common stock 153,904 153,733 153,309 119,038 118,744 Additional paid-in capital 522,124 520,669 518,376 244,368 242,789 Retained earnings 455,040 435,416 410,572 398,946 381,222 Accumulated other comprehensive (loss) (138,481 ) (159,875 ) (175,233 ) (115,979 ) (65,890 ) Total stockholders’ equity 992,587 949,943 907,024 646,373 676,865 Total liabilities and stockholders’ equity $ 10,358,516 $ 9,686,067 $ 9,462,639 $ 8,111,524 $ 8,112,295
Origin Bancorp, Inc. Loan Data At and For the Three Months Ended March 31, 2023 December 31, 2022 September 30, 2022 June 30, 2022 March 31, 2022 LHFI (Dollars in thousands, unaudited) Commercial real estate $ 2,385,400 $ 2,304,678 $ 2,174,347 $ 1,909,054 $ 1,801,382 Construction/land/land development 948,626 945,625 853,311 635,556 593,350 Residential real estate 1,588,491 1,477,538 1,399,182 1,005,623 922,054 Total real estate loans 4,922,517 4,727,841 4,426,840 3,550,233 3,316,786 Commercial and industrial 2,091,093 2,051,161 1,967,037 1,430,239 1,358,597 Mortgage warehouse lines of credit 337,529 284,867 460,573 531,888 503,249 Consumer 24,684 26,153 28,231 15,733 15,774 Total LHFI 7,375,823 7,090,022 6,882,681 5,528,093 5,194,406 Less: allowance for loan credit losses ("ALCL") 92,008 87,161 83,359 63,123 62,173 LHFI, net $ 7,283,815 $ 7,002,861 $ 6,799,322 $ 5,464,970 $ 5,132,233 Nonperforming assets Nonperforming LHFI Commercial real estate $ 3,100 $ 526 $ 431 $ 224 $ 233 Construction/land/land development 226 270 366 373 256 Residential real estate 8,969 7,712 7,641 7,478 11,609 Commercial and industrial 4,730 1,383 5,134 5,930 8,987 Mortgage warehouse lines of credit — — 385 — — Consumer 53 49 74 80 96 Total nonperforming LHFI 17,078 9,940 14,031 14,085 21,181 Nonperforming loans held for sale 4,646 3,933 2,698 2,461 2,698 Total nonperforming loans 21,724 13,873 16,729 16,546 23,879 Repossessed assets 806 806 1,781 2,009 1,703 Total nonperforming assets $ 22,530 $ 14,679 $ 18,510 $ 18,555 $ 25,582 Classified assets $ 86,975 $ 75,009 $ 71,562 $ 54,124 $ 72,082 Past due LHFI(1) 11,498 10,932 10,866 7,186 21,753 Allowance for loan credit losses Balance at beginning of period $ 87,161 $ 83,359 $ 63,123 $ 62,173 $ 64,586 Provision for loan credit losses 6,158 3,982 15,787 2,503 (659 ) ALCL - BTH merger — — 5,527 — — Loans charged off 2,293 2,537 1,628 2,192 2,402 Loan recoveries 982 2,357 550 639 648 Net charge-offs 1,311 180 1,078 1,553 1,754 Balance at end of period $ 92,008 $ 87,161 $ 83,359 $ 63,123 $ 62,173 Credit quality ratios (Dollars in thousands, unaudited) Total nonperforming assets to total assets 0.22 % 0.15 % 0.20 % 0.23 % 0.32 % Total nonperforming loans to total loans 0.29 0.19 0.24 0.30 0.45 Nonperforming LHFI to LHFI 0.23 0.14 0.20 0.25 0.41 Past due LHFI to LHFI 0.16 0.15 0.16 0.13 0.42 ALCL to nonperforming LHFI 538.75 876.87 594.11 448.16 293.53 ALCL to total LHFI 1.25 1.23 1.21 1.14 1.20 ALCL to total LHFI, adjusted(2) 1.30 1.28 1.29 1.25 1.33 Net charge-offs to total average LHFI (annualized) 0.07 0.01 0.07 0.12 0.14
____________________________(1) Past due LHFI are defined as loans 30 days or more past due.(2) The ALCL to total LHFI, adjusted is calculated at March 31, 2023, December 31, 2022, and September 30, 2022, by excluding the ALCL for warehouse loans from the total LHFI ALCL in the numerator and excluding the warehouse loans from the LHFI in the denominator. For the periods prior to September 30, 2022, it is calculated by excluding the ALCL for warehouse loans from the total LHFI ALCL in the numerator and excluding the PPP and warehouse loans from the LHFI in the denominator. Due to their low-risk profile, mortgage warehouse loans require a disproportionately low allocation of the ALCL and PPP loans are fully guaranteed by the SBA.
Origin Bancorp, Inc. Average Balances and Yields/Rates Three Months Ended March 31, 2023 December 31, 2022 March 31, 2022 Average Balance Yield/Rate Average Balance Yield/Rate Average Balance Yield/Rate Assets (Dollars in thousands, unaudited) Commercial real estate $ 2,342,545 5.37 % $ 2,205,219 5.07 % $ 1,718,259 4.02 % Construction/land/land development 974,914 6.48 916,697 6.01 565,347 4.21 Residential real estate 1,519,325 4.85 1,442,281 4.57 907,320 3.98 Commercial and industrial ("C&I") 2,070,356 7.42 2,053,473 6.74 1,425,236 4.26 Mortgage warehouse lines of credit 213,201 5.72 322,658 5.75 423,795 3.73 Consumer 26,017 8.10 26,924 8.18 16,462 5.78 LHFI 7,146,358 6.03 6,967,252 5.63 5,056,419 4.08 Loans held for sale 26,140 4.34 28,842 5.39 32,710 3.27 Loans receivable 7,172,498 6.02 6,996,094 5.62 5,089,129 4.08 Investment securities-taxable 1,395,857 2.37 1,421,839 2.17 1,408,109 1.47 Investment securities-nontaxable 238,145 2.40 253,073 3.34 253,875 2.24 Non-marketable equity securities held in other financial institutions 71,089 3.72 63,321 3.68 45,205 1.93 Interest-bearing balances due from banks 300,795 4.61 175,138 3.71 746,057 0.20 Total interest-earning assets 9,178,384 5.31 8,909,465 4.96 7,542,375 3.13 Noninterest-earning assets(1) 605,218 621,078 502,871 Total assets $ 9,783,602 $ 9,530,543 $ 8,045,246 Liabilities and Stockholders’ Equity Liabilities Interest-bearing liabilities Savings and interest-bearing transaction accounts $ 4,648,397 2.47 % $ 4,362,915 1.59 % $ 3,975,395 0.22 % Time deposits 976,905 2.58 753,526 1.22 535,044 0.54 Total interest-bearing deposits 5,625,302 2.49 5,116,441 1.54 4,510,439 0.26 FHLB advances and other borrowings 457,478 5.21 552,903 3.02 265,472 1.67 Subordinated indebtedness 201,809 5.14 201,731 4.95 157,455 4.64 Total interest-bearing liabilities 6,284,589 2.77 5,871,075 1.79 4,933,366 0.48 Noninterest-bearing liabilities Noninterest-bearing deposits 2,392,176 2,593,321 2,218,092 Other liabilities(1) 130,793 152,297 171,284 Total liabilities 8,807,558 8,616,693 7,322,742 Stockholders’ Equity 976,044 913,850 722,504 Total liabilities and stockholders’ equity $ 9,783,602 $ 9,530,543 $ 8,045,246 Net interest spread 2.54 % 3.17 % 2.65 % NIM 3.41 3.77 2.82 NIM - (FTE)(2) 3.44 3.81 2.86 NIM - FTE, adjusted(3) 3.36 3.73 2.76
____________________________(1) Includes Government National Mortgage Association (“GNMA”) repurchase average balances of $4.4 million , $25.9 million , and $43.8 million for the three months ended March 31, 2023, December 31, 2022, and March 31, 2022, respectively. The GNMA repurchase asset and liability are recorded as equal offsetting amounts in the consolidated balance sheets, with the asset included in Loans held for sale and the liability included in FHLB advances and other borrowings. During the quarter ended December 31, 2022, the Company entered into a contract to transfer the servicing of these GNMA loans to a third party which closed during the quarter ended March 31, 2023.(2) In order to present pre-tax income and resulting yields on tax-exempt investments comparable to those on taxable investments, a tax-equivalent adjustment has been computed. This adjustment also includes income tax credits received on Qualified School Construction Bonds.(3) NIM - FTE, adjusted, is calculated for the quarters ended March 31, 2023, and December 31, 2022, by removing the net purchase accounting accretion from the net interest income. For periods prior to September 30, 2022, it is calculated by removing average PPP loans from average interest-earning assets and removing the associated interest income (net of 35 basis points assumed cost of funds on average PPP loan balances) from net interest income.
Origin Bancorp, Inc. Non-GAAP Financial Measures At and For the Three Months Ended March 31, 2023 December 31, 2022 September 30, 2022 June 30, 2022 March 31, 2022 (Dollars in thousands, except per share amounts, unaudited) Calculation of adjusted net income: Net interest income after provision for credit losses $ 70,950 $ 80,125 $ 61,581 $ 56,052 $ 52,829 Add: CECL provision for non-PCD loans — — 14,890 — — Adjusted net interest income after provision for credit losses 70,950 80,125 76,471 56,052 52,829 Total noninterest income $ 16,384 $ 13,429 $ 13,723 $ 14,216 $ 15,906 Less: GNMA MSR impairment — — (1,950 ) — — Less: gain on sales of securities, net 144 — 1,664 — — Adjusted total noninterest income 16,240 13,429 14,009 14,216 15,906 Total noninterest expense $ 56,760 $ 57,254 $ 56,241 $ 44,150 $ 42,774 Less: merger-related expenses — 1,179 3,614 807 571 Adjusted total noninterest expense 56,760 56,075 52,627 43,343 42,203 Income tax expense $ 6,272 $ 6,822 $ 2,820 $ 4,807 $ 5,278 Add: income tax expense on adjustment items (30 ) 248 3,946 169 120 Adjusted income tax expense 6,242 7,070 6,766 4,976 5,398 Net income $ 24,302 $ 29,478 $ 16,243 $ 21,311 $ 20,683 Adjusted net income $ 24,188 $ 30,409 $ 31,087 $ 21,949 $ 21,134 Calculation of adjusted PTPP earnings: Provision for credit losses $ 6,197 $ 4,624 $ 16,942 $ 3,452 $ (327 ) Less: CECL provision for non-PCD loans — — 14,890 — — Adjusted provision for credit losses $ 6,197 $ 4,624 $ 2,052 $ 3,452 $ (327 ) Adjusted net income $ 24,188 $ 30,409 $ 31,087 $ 21,949 $ 21,134 Plus: adjusted provision for credit losses 6,197 4,624 2,052 3,452 (327 ) Plus: adjusted income tax expense 6,242 7,070 6,766 4,976 5,398 Adjusted PTPP Earnings $ 36,627 $ 42,103 $ 39,905 $ 30,377 $ 26,205 Calculation of adjusted dilutive EPS: Numerator: Adjusted net income $ 24,188 $ 30,409 $ 31,087 $ 21,949 $ 21,134 Denominator: Weighted average diluted common shares outstanding 30,882,156 30,867,511 28,481,619 23,788,164 23,770,791 Diluted earnings per share $ 0.79 $ 0.95 $ 0.57 $ 0.90 $ 0.87 Adjusted diluted earnings per share 0.78 0.99 1.09 0.92 0.89 Calculation of adjusted ROAA and adjusted ROAE: Adjusted net income $ 24,188 $ 30,409 $ 31,087 $ 21,949 $ 21,134 Divided by number of days in the quarter 90 92 92 91 90 Multiplied by number of days in the year 365 365 365 365 365 Annualized adjusted net income $ 98,096 $ 120,644 $ 123,334 $ 88,037 $ 85,710 Divided by total average assets 9,783,602 9,530,543 9,202,421 7,944,720 8,045,246 ROAA (annualized) 1.01 % 1.23 % 0.70 % 1.08 % 1.04 % Adjusted ROAA (annualized) 1.00 1.27 1.34 1.11 1.07 Divided by total average stockholders' equity $ 976,044 $ 913,850 $ 938,752 $ 667,323 $ 722,504 ROAE (annualized) 10.10 % 12.80 % 6.86 % 12.81 % 11.61 % Adjusted ROAE (annualized) 10.05 13.20 13.14 13.19 11.86 Calculation of adjusted PTPP ROAA and adjusted PTPP ROAE: Adjusted PTPP earnings $ 36,627 $ 42,103 $ 39,905 $ 30,377 $ 26,205 Divided by number of days in the quarter 90 92 92 91 90 Multiplied by the number of days in the year 365 365 365 365 365 Adjusted PTPP earnings, annualized $ 148,543 $ 167,039 $ 158,319 $ 121,842 $ 106,276 Divided by total average assets $ 9,783,602 $ 9,530,543 $ 9,202,421 $ 7,944,720 $ 8,045,246 Adjusted PTPP ROAA(annualized) 1.52 % 1.75 % 1.72 % 1.53 % 1.32 % Divided by total average stockholders' equity $ 976,044 $ 913,850 $ 938,752 $ 667,323 $ 722,504 Adjusted PTPP ROAE (annualized) 15.22 % 18.28 % 16.86 % 18.26 % 14.71 % Calculation of tangible common equity to tangible common assets, book value per common share and adjusted tangible book value per common share: Total assets $ 10,358,516 $ 9,686,067 $ 9,462,639 $ 8,111,524 $ 8,112,295 Less: goodwill 128,679 128,679 136,793 34,153 34,153 Less: other intangible assets, net 47,277 49,829 52,384 15,900 16,425 Tangible assets 10,182,560 9,507,559 9,273,462 8,061,471 8,061,717 Total common stockholders’ equity $ 992,587 $ 949,943 $ 907,024 $ 646,373 $ 676,865 Less: goodwill 128,679 128,679 136,793 34,153 34,153 Less: other intangible assets, net 47,277 49,829 52,384 15,900 16,425 Tangible common equity 816,631 771,435 717,847 596,320 626,287 Less: accumulated other comprehensive (loss) income (138,481 ) (159,875 ) (175,233 ) (115,979 ) (65,890 ) Adjusted tangible common equity 955,112 931,310 893,080 712,299 692,177 Divided by common shares outstanding at the end of the period 30,780,853 30,746,600 30,661,734 23,807,677 23,748,748 Book value per common share $ 32.25 $ 30.90 $ 29.58 $ 27.15 $ 28.50 Tangible book value per common share 26.53 25.09 23.41 25.05 26.37 Adjusted tangible book value per common share 31.03 30.29 29.13 29.92 29.15 Tangible common equity to tangible assets 8.02 % 8.11 % 7.74 % 7.40 % 7.77 % Calculation of ROATCE and adjusted ROATCE: Net income $ 24,302 $ 29,478 $ 16,243 $ 21,311 $ 20,683 Divided by number of days in the quarter 90 92 92 91 90 Multiplied by number of days in the year 365 365 365 365 365 Annualized net income $ 98,558 $ 116,951 $ 64,442 $ 85,478 $ 83,881 Adjusted net income $ 24,188 $ 30,409 $ 31,087 $ 21,949 $ 21,134 Divided by number of days in the quarter 90 92 92 91 90 Multiplied by number of days in the year 365 365 365 365 365 Annualized adjusted net income $ 98,096 $ 120,644 $ 123,334 $ 88,037 $ 85,710 Total average common stockholders’ equity $ 976,044 $ 913,850 $ 938,752 $ 667,323 $ 722,504 Less: average goodwill 128,679 131,302 95,696 34,153 34,366 Less: average other intangible assets, net 48,950 51,495 40,918 16,242 16,775 Average tangible common equity 798,415 731,053 802,138 616,928 671,363 ROATCE 12.34 % 16.00 % 8.03 % 13.86 % 12.49 % Adjusted ROATCE 12.29 16.50 15.38 14.27 12.77 Calculation of adjusted efficiency ratio: Total noninterest expense $ 56,760 $ 57,254 $ 56,241 $ 44,150 $ 42,774 Less: insurance and mortgage noninterest expense 8,033 8,031 8,479 8,397 8,626 Less: merger-related expenses — 1,179 3,614 807 571 Adjusted total noninterest expense 48,727 48,044 44,148 34,946 33,577 Net interest income $ 77,147 $ 84,749 $ 78,523 $ 59,504 $ 52,502 Less: insurance and mortgage net interest income 1,493 1,376 1,208 1,082 875 Add: Total noninterest income 16,384 13,429 13,723 14,216 15,906 Less: insurance and mortgage noninterest income 8,792 6,255 4,737 8,047 10,552 Less: gain on sale of securities, net 144 — 1,664 — — Adjusted total revenue 83,102 90,547 84,637 64,591 56,981 Efficiency ratio 60.69 % 58.32 % 60.97 % 59.89 % 62.53 % Adjusted efficiency ratio 58.64 53.06 52.16 54.10 58.93
