Origin Bancorp, Inc. Reports Earnings For Third Quarter 2022

RUSTON, La., Oct. 26, 2022 (GLOBE NEWSWIRE) -- Origin Bancorp, Inc. (Nasdaq: OBNK) (“Origin” or the “Company”), the holding company for Origin Bank (the “Bank”), today announced net income of $16.2 million, or $0.57 diluted earnings per share for the quarter ended September 30, 2022, compared to $21.3 million, or $0.90 diluted earnings per share, for the quarter ended June 30, 2022, and compared to net income of $27.0 million, or $1.14 diluted earnings per share for the quarter ended September 30, 2021. Adjusted net income⁽¹⁾ for the quarter ended September 30, 2022, was $31.1 million, or $1.09 adjusted diluted earnings per share^(1). Pre-tax, pre-provision net income ("PTPP")⁽¹⁾ was $36.0 million.

"This was a significant and exciting quarter for Origin as we showed strong core profitability and completed the merger with BT Holdings,” said Drake Mills, chairman, president and CEO of Origin Bancorp, Inc. “Origin now has meaningful expansion across the I-20 corridor in East Texas and adds impressive depth in Dallas and Fort Worth.”

⁽¹⁾ Adjusted net income, adjusted diluted earnings per share and PTPP 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.

Third Quarter Financial Highlights

• On August 1, 2022, the Company completed its previously announced merger with BT Holdings, Inc., (“BTH”). As a result of the merger with BTH, the Company recorded a $14.9 million provision expense for loan credit losses for the Current Expected Credit Loss ("CECL") requirement on non-Purchased Credit Deteriorated ("PCD") loans, along with a $5.5 million allowance for loan credit losses on PCD loans. In total, the Company incurred $18.5 million in merger-related expenses during the quarter ended September 30, 2022, which includes the $14.9 million provision expense for loan credit losses.
• The Company's annualized returns on average assets ("ROA") and average equity ("ROE") were 0.70% and 6.86%, respectively, for the quarter ended September 30, 2022. Additionally, the Company's annualized adjusted returns on average assets ("Adjusted ROA") and adjusted return on average equity ("Adjusted ROE") were 1.34% and 13.14%, respectively, for the quarter ended September 30, 2022.
• Net interest income for the quarter ended September 30, 2022, was $78.5 million, reflecting a $19.0 million, or 32.0% increase, compared to the linked quarter, and a $26.0 million, or 49.5% increase, compared to the prior year quarter.
• The fully tax-equivalent net interest margin (“NIM”) was 3.68% for the quarter ended September 30, 2022, reflecting a 45 basis point increase from the linked quarter and a 66 basis point increase from the quarter ended September 30, 2021. The fully tax-equivalent NIM, excluding the net purchase accounting accretion (“PAA”) from the net interest income for the quarter ended September 30, 2022, was 3.61%.
• Total loans held for investment (“LHFI”) at September 30, 2022, were $6.88 billion. Adjusting for the impact of the BTH merger, and excluding mortgage warehouse lines of credit, loan growth during the quarter was $215.3 million, or 3.5%.
• Provision for credit losses was a net expense of $16.9 million for the quarter ended September 30, 2022, compared to a net expense of $3.5 million and a net benefit of $3.9 million for the linked quarter and the quarter ended September 30, 2021, respectively. The increase was primarily due to the merger with BTH, which required a Day 1 CECL loan provision of $14.9 million.
• The allowance for loan credit losses ("ALCL") to LHFI was 1.21% at September 30, 2022, compared to 1.14% at June 30, 2022. The ALCL to LHFI, adjusted⁽²⁾ was 1.29% at September 30, 2022, compared to 1.25% at June 30, 2022.
• Total nonperforming LHFI to total LHFI was 0.20% at September 30, 2022, compared to 0.25% at June 30, 2022, and 0.47% at September 30, 2021, reflecting a 20.0% and 57.4% decrease in the ratio when compared to the linked quarter and prior year quarter, respectively. The ALCL to nonperforming LHFI was 594.1% at September 30, 2022, compared to 448.2% and 284.9% at the linked quarter and prior year quarter, respectively.

⁽²⁾ The ALCL to total LHFI, adjusted, is calculated at 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 Small Business Administration ("SBA").

Results of Operations for the Three Months Ended September 30, 2022

Net Interest Income and Net Interest Margin

Net interest income for the quarter ended September 30, 2022, was $78.5 million, an increase of $19.0 million, or 32.0%, compared to the linked quarter. Purchase accounting accretion on acquired loans was $1.2 million during the current quarter, with remaining purchase accounting net loan discounts totaling $3.9 million at September 30, 2022. Net purchase accounting accretion income on deposits and sub-debt totaled $228,000, bringing the total impact from purchase accounting treatment on net interest income to $1.4 million for the three months ended September 30, 2022. Excluding the net purchase accounting accretion, the increase in net interest income was almost equally due to increases in average interest-earning assets and increases in market interest rates, partially offset by higher interest expense primarily due to rate increases on average savings and interest-bearing deposit balances and borrowings, as explained further in the paragraph below.

The table below presents the estimated loan and deposit accretion and sub-debt amortization schedule resulting from the BTH merger purchase accounting adjustments for the periods shown.

	Loan Accretion Income			Deposit Accretion Income			Sub-Debt Amortization Expense				Total Expected Impact to Net Interest Income
3Q2022 (actual, realized)	$	1,187		$	238		$	(10	)		$	1,415
4Q2022 (estimated)	$	1,653		$	250		$	(15	)		$	1,888
For the years ending (estimated):
2023		2,023			218			(62	)			2,179
Thereafter		223			23			(706	)			(460	)
Total remaining purchase accounting adjustment at September 30, 2022	$	3,899		$	491		$	(783	)		$	3,607

The increase in net interest income for the three-month period ended September 30, 2022, was the result of a $25.4 million increase in total interest income partially offset by a $6.4 million increase in interest expense. Increases in market interest rates drove a $13.6 million increase in total interest income, while increases in average interest-earning assets drove an $11.8 million increase in total interest income. The increase in interest expense was primarily due to market rate increases, which drove a $4.2 million increase in interest expense on deposits and a $1.0 million increase in interest expense on FHLB advances and subordinated debt.

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 four more times during 2022, with the most recent and current Federal Funds target rate range being set at September 21, 2022, to 3.00% to 3.25%. At September 30, 2022, the Federal Funds target rate range had increased 300 basis points on a year-to-date basis. Increases in market interest rates contributed $11.6 million to the total increase in interest income earned on total LHFI, while market interest rates increased our total deposit interest expense by $4.2 million during the current quarter compared to the linked quarter.

The yield on LHFI was 4.94% and 4.26% for the three months ended September 30, 2022, and June 30, 2022, respectively, and average LHFI balances increased to $6.39 billion for the quarter ended September 30, 2022, compared to $5.24 billion for the linked quarter. The yield on total investment securities was 2.12% for the three months ended September 30, 2022, compared to 1.85% for the linked quarter. Additionally, the rate on interest-bearing deposits increased to 0.64% for the quarter ended September 30, 2022, compared to 0.29% for the quarter ended June 30, 2022, and average interest-bearing deposit balances increased to $4.83 billion from $4.27 billion for the linked quarter. Average balances of subordinated debentures also increased to $186.8 million for the quarter ended September 30, 2022, compared to $157.5 million for the linked quarter due to subordinated indebtedness assumed in the merger, and reflected a rate of 4.81% for the current quarter compared to 4.64% for the linked quarter.

The fully tax-equivalent NIM was 3.68% for the quarter ended September 30, 2022, a 45 basis point increase and a 66 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 September 30, 2022, was 4.23%, an increase of 70 basis points and an increase of 90 basis points compared to the linked quarter and the prior year quarter, respectively. The rate paid on total deposits for the quarter ended September 30, 2022, was 0.41%, representing a 22 basis point increase from the linked quarter and a 20 basis point increase compared to the prior year quarter. The rate paid on subordinated debentures also increased to 4.81%, reflecting a 17 and an 18 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 seven basis points during the current quarter.

Credit Quality

The table below includes key credit quality information:

	At and For the Three Months Ended								$ Change				% Change
(Dollars in thousands)	September 30, 2022				June 30, 2022				Linked Quarter				Linked Quarter
Past due LHFI	$	10,866			$	7,186			$	3,680			51.2	%
ALCL		83,359				63,123				20,236			32.1
Classified loans		69,781				52,115				17,666			33.9
Total nonperforming LHFI		14,031				14,085				(54	)		(0.4	)
Provision for credit losses		16,942				3,452				13,490			390.8
Net charge-offs		1,078				1,553				(475	)		(30.6	)
Credit quality ratios(1):
ALCL to nonperforming LHFI		594.11	%			448.16	%			N/A			14595	bp
ALCL to total LHFI		1.21				1.14				N/A			7	bp
ALCL to total LHFI, adjusted(2)		1.29				1.25				N/A			4	bp
Nonperforming LHFI to LHFI		0.20				0.25				N/A			-5	bp
Net charge-offs to total average LHFI (annualized)		0.07				0.12				N/A			-5	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 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.

The Company recorded a credit loss provision of $16.9 million during the quarter ended September 30, 2022, compared to a credit loss provision of $3.5 million recorded during the linked quarter. The increase is primarily due to the merger with BTH, completed on August 1, 2022, which required a Day 1 CECL loan provision of $14.9 million. The remaining $2.1 million provision for credit losses in excess of the loan credit loss provision recorded in conjunction with the BTH merger was primarily due to a $1.2 million provision expense for off-balance sheet items due to an increase in unfunded loan commitments unrelated to those acquired in the BTH merger.

Overall, absent the impact of the BTH merger and its effect on the following: provision of $14.9 million, classified loans of $17.5 million, past due loans of $3.1 million, and nonperforming LHFI of $3.0 million, most credit metrics improved at September 30, 2022, when compared to the linked quarter. The ALCL to nonperforming LHFI increased to 594.1% at September 30, 2022, compared to 448.2% at June 30, 2022, driven by the $20.2 million increase in the Company’s ALCL for the quarter, which was predominately driven by the BTH merger. Quarterly net charge-offs decreased to $1.1 million from $1.6 million for the linked quarter, decreasing to 0.07% (annualized) to total average LHFI for the quarter ending September 30, 2022, compared to 0.12% (annualized) for the quarter ending June 30, 2022. Also, primarily due to the BTH merger, classified loans increased $17.7 million at September 30, 2022, compared to the linked quarter and represented 1.01% of LHFI, at September 30, 2022, compared to 0.94% at June 30, 2022. The ALCL to total LHFI increased to 1.21% at September 30, 2022, compared to 1.14% at June 30, 2022.

Noninterest Income

Noninterest income for the quarter ended September 30, 2022, was $13.7 million, a decrease of $493,000, or 3.5%, from the linked quarter. The decrease from the linked quarter was primarily driven by decreases of $3.3 million in mortgage banking revenue, offset by an increase of $1.7 million in gain on sales of securities, net.

The $3.3 million decrease in mortgage banking revenue compared to the linked quarter was primarily driven by an 11% reduction in origination volume, a 30% reduction in sales volume and a 45% reduction in sales margin experienced in the current quarter. Also contributing to the decline was a $2.0 million impairment of the GNMA MSR portfolio.

The gain on sales of securities, net, increased $1.7 million when compared to the quarter ended June 30, 2022, due to the sale of primarily legacy BTH securities during the current quarter as a result of investment strategy and liquidity management. The proceeds from the sale were primarily used to pay down our short-term FHLB borrowings.

Noninterest Expense

Noninterest expense for the quarter ended September 30, 2022, was $56.2 million, an increase of $12.1 million compared to the linked quarter. The increase from the linked quarter was primarily driven by increases of $4.5 million, $2.8 million and $1.3 million in salaries and employee benefits expense, merger-related expenses, and intangible asset amortization expense, respectively.

The $4.5 million increase in salaries and employee benefits expense was primarily driven by the addition of 123 full-time equivalent employees due to the BTH merger, which contributed $2.3 million to the total increase. Additionally, incentive accruals increased by $995,000 due to exceeding performance metrics during the period. We made the decision last quarter to implement inflationary raises for a large segment of our employees.

Merger-related expenses associated with the BTH merger were $3.6 million during the current quarter.

The $1.3 million increase in intangible asset amortization expense was due to the core deposit intangible established in conjunction with the BTH merger.

Income Taxes

The effective tax rate was 14.8% during the quarter ended September 30, 2022, compared to 18.4% during the linked quarter and 18.8% during the quarter ended September 30, 2021. The effective tax rate for the quarter ended September 30, 2022, was lower due to tax-exempt items having a larger than proportional effect on the Company's effective income tax rate as income before taxes was lower for the quarter ended September 30, 2022, compared to both the linked quarter and same quarter last year primarily due to merger-related expense during the current quarter.

Financial Condition

Loans

• Total LHFI increased $1.35 billion compared to the linked quarter and $1.70 billion compared to September 30, 2021.
• On August 1, 2022, we acquired $1.24 billion in loans, net of fair value adjustments, from BTH.
• Adjusting for the impact of BTH and excluding mortgage warehouse loans, loan growth during the current quarter totaled $215.3 million, or 3.5%, when compared to the linked quarter.
• Mortgage warehouse lines of credit totaled $460.6 million at September 30, 2022, a decrease of $71.3 million, or 13.4%, compared to the linked quarter and a decrease of $252.8 million, or 35.4%, compared to September 30, 2021.
• Total LHFI at September 30, 2022, were $6.88 billion, reflecting an increase of 24.5% compared to the linked quarter and 32.7% compared to September 30, 2021.
  

Securities

• Total securities at September 30, 2022, were $1.69 billion, a decrease of $125.5 million, or 6.9%, compared to the linked quarter and an increase of $154.7 million, or 10.1%, compared to September 30, 2021.
• The fair value of acquired BTH securities totaled $456.8 million.
• The Company sold $447.5 million of primarily legacy BTH available for sale ("AFS") securities during the quarter ended September 30, 2022, and used the majority of the funds to pay down short-term Federal Home Loan Bank ("FHLB") advances.
• The steepening of the short end of the yield curve during the year-to-date 2022 period negatively impacted the fair value of the AFS portfolio and caused an accumulated other comprehensive loss of $175.2 million, $59.3 million of which was recorded during the current quarter.
• The total securities portfolio effective duration was 5.2 years as of September 30, 2022, compared to 4.4 years as of June 30, 2022.
  

Deposits

• Total deposits increased $1.47 billion compared to the linked quarter and increased $1.62 billion compared to September 30, 2021, respectively.
• The merger with BTH reflected the addition of $1.57 billion of deposits, net of fair value adjustments, at August 1, 2022, and contributed $865.9 million in interest-bearing demand, $398.1 million in noninterest-bearing and $302.5 million in time deposits.
• Adjusting for the impact of BTH, deposits decreased $139.7 million during the quarter ended September 30, 2022, compared to June 30, 2022, and grew $4.7 million compared to September 30, 2021. The quarterly decrease was due in large part to one customer moving deposits out of the bank due to a business transaction combined with our strategic decision to allow some non-core funding to leave the bank.
• For both the quarter ended September 30, 2022, and the linked quarter, average noninterest-bearing deposits as a percentage of total average deposits were 34.9% compared to 31.7% for the quarter ended September 30, 2021.

Borrowings

• The Company assumed $37.6 million of subordinated promissory notes ("Notes") from BTH in conjunction with the merger, $10.1 million in repurchase agreements with former BTH depositors and $7.2 million in junior subordinated debt.
• During the quarter ended September 30, 2022, short-term FHLB advances decreased from $600.0 million to $150.0 million. As mentioned above, the Company sold primarily legacy BTH AFS securities during the quarter ended September 30, 2022, and used the majority of the funds to pay down short-term FHLB advances.

Stockholders’ Equity

• Stockholders’ equity was $907.0 million at September 30, 2022, an increase of $260.7 million compared to $646.4 million at June 30, 2022, and an increase of $201.4 million compared to $705.7 million at September 30, 2021.
• The increase in stockholders’ equity is primarily associated with the BTH merger, which drove a $306.3 million increase in stockholders' equity and net income for the quarter of $16.2 million. These increases were partially offset by a $59.3 million other comprehensive loss, net of tax, and dividend during the current quarter of $4.6 million.
• Book value and tangible book value were negatively impacted by an accumulated other comprehensive loss, net of tax, experienced primarily on the Company's AFS securities portfolio of $175.2 million at September 30, 2022, with $59.3 million of the loss recorded during the current quarter.

Conference Call

Origin will hold a conference call to discuss its third quarter 2022 results on Thursday, October 27, 2022, at 8:00 a.m. Central Time (9:00 a.m. Eastern Time). To participate in the live conference call, please dial (888) 437-3179 (U.S. and Canada); and (862) 298-0702 (International), 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://www.webcaster4.com/Webcast/Page/2864/46747.

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 59 banking centers located from Dallas/Fort Worth, East Texas and Houston, across North Louisiana and into Mississippi. For more information, visit www.origin.bank.

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, including the Company’s loan loss reserves and allowance for credit losses related to the COVID-19 pandemic and any expected purchases of its outstanding common stock, and related transactions and other projections based on macroeconomic and industry trends, including expectations regarding and efforts to respond to the COVID-19 pandemic and 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: 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, and customer and client behavior); the effectiveness of Origin’s risk management framework and quantitative models; the risk of widespread inflation; 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; business and economic conditions generally and in the financial services industry, nationally and within Origin’s primary market areas, including the impact of supply-chain disruptions and 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; 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; 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 (“LIBOR”) and the impact of any replacement alternatives such as the Secured Overnight Financing Rate (“SOFR”) 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 (“SEC”) 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 Relations
Chris Reigelman
318-497-3177
chris@origin.bank

Media Contact
Ryan Kilpatrick
318-232-7472
rkilpatrick@origin.bank

Origin Bancorp, Inc.
Selected Quarterly Financial Data

	Three Months Ended
	September 30, 2022				June 30, 2022				March 31, 2022				December 31, 2021				September 30, 2021
Income statement and share amounts	(Dollars in thousands, except per share amounts, unaudited)
Net interest income	$	78,523			$	59,504			$	52,502			$	54,180			$	52,541
Provision for credit losses		16,942				3,452				(327	)			(2,647	)			(3,921	)
Noninterest income		13,723				14,216				15,906				16,701				15,923
Noninterest expense		56,241				44,150				42,774				40,346				39,165
Income before income tax expense		19,063				26,118				25,961				33,182				33,220
Income tax expense		2,820				4,807				5,278				4,860				6,242
Net income	$	16,243			$	21,311			$	20,683			$	28,322			$	26,978
Adjusted net income(1)	$	31,087			$	21,949			$	21,134			$	24,155			$	26,978
PTPP(1)		36,005				29,570				25,634				30,535				29,299
Basic earnings per common share		0.57				0.90				0.87				1.21				1.15
Diluted earnings per common share		0.57				0.90				0.87				1.20				1.14
Adjusted diluted earnings per common share(1)		1.09				0.92				0.89				1.02				1.14
Dividends declared per common share		0.15				0.15				0.13				0.13				0.13
Weighted average common shares outstanding - basic		28,298,984				23,740,611				23,700,550				23,484,056				23,429,705
Weighted average common shares outstanding - diluted		28,481,619				23,788,164				23,770,791				23,609,874				23,613,010
Balance sheet data
Total LHFI	$	6,882,681			$	5,528,093			$	5,194,406			$	5,231,331			$	5,187,288
Total assets		9,462,639				8,111,524				8,112,295				7,861,285				7,470,478
Total deposits		7,777,327				6,303,158				6,767,179				6,570,693				6,158,768
Total stockholders’ equity		907,024				646,373				676,865				730,211				705,667
Performance metrics and capital ratios
Yield on LHFI		4.94	%			4.26	%			4.08	%			4.11	%			4.05	%
Yield on interest-earnings assets		4.23				3.53				3.13				3.35				3.33
Cost of interest-bearing deposits		0.64				0.29				0.26				0.28				0.30
Cost of total deposits		0.41				0.19				0.17				0.19				0.21
NIM - fully tax equivalent ("FTE")		3.68				3.23				2.86				3.06				3.02
NIM - FTE, adjusted (2)		3.61				3.20				2.76				2.92				2.94
Return on average assets (annualized) ("ROA")		0.70				1.08				1.04				1.49				1.43
Adjusted ROA (annualized) (1)		1.34				1.11				1.07				1.27				1.43
PTPP ROA (1)		1.55				1.49				1.29				1.60				1.56
Return on average stockholders’ equity (annualized) ("ROE")		6.86				12.81				11.61				15.70				15.21
Adjusted ROE (annualized) (1)		13.14				13.19				11.86				13.39				15.21
PTPP ROE (1)		15.22				17.77				14.39				16.93				16.52
Book value per common share	$	29.58			$	27.15			$	28.50			$	30.75			$	30.03
Tangible book value per common share (1)(3)		23.41				25.05				26.37				28.59				28.76
Adjusted tangible book value per common share (1)		29.13				29.92				29.15				28.35				28.26
Efficiency ratio (4)		60.97	%			59.89	%			62.53	%			56.92	%			57.21	%
Core efficiency ratio(1)		52.16				54.10				58.93				57.25				53.03
Common equity tier 1 to risk-weighted assets (5)		10.51				10.82				11.20				11.20				11.27
Tier 1 capital to risk-weighted assets (5)		10.70				10.96				11.35				11.36				11.42
Total capital to risk-weighted assets (5)		13.98				14.09				14.64				14.77				14.95
Tier 1 leverage ratio (5)		9.63				9.09				8.84				9.20				9.20

_____________________________________________________
(1)	Adjusted net income, PTPP earnings, adjusted diluted earnings per common share, adjusted ROA, PTPP ROA, adjusted ROE, PTPP ROE, tangible book value per common share, adjusted tangible book value per common share and core 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 quarter ended September 30, 2022, by removing the net Purchase Accounting ("PAA") 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)	A decline in accumulated other comprehensive loss during the YTD period ended September 30, 2022, negatively impacted total stockholders' equity and tangible common equity and caused tangible book value per common share to decline primarily due to the steepening of the short end of the yield curve that occurred during 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)	September 30, 2022, 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.
Selected Year-to-Date Financial Data

	Nine Months Ended September 30,
(Dollars in thousands, except per share amounts)		2022				2021
Income statement and share amounts	(Unaudited)
Net interest income	$	190,529			$	162,072
Provision for credit losses		20,067				(8,118	)
Noninterest income		43,845				45,492
Noninterest expense		143,165				116,433
Income before income tax expense		71,142				99,249
Income tax expense		12,905				19,025
Net income	$	58,237			$	80,224
Adjusted net income(1)	$	74,170			$	78,902
PTPP earnings(1)		91,209				91,131
Basic earnings per common share (2)		2.31				3.43
Diluted earnings per common share(2)		2.30				3.40
Adjusted diluted earnings per common share(1)		2.92				3.34
Dividends declared per common share		0.43				0.36
Weighted average common shares outstanding - basic		25,263,681				23,413,794
Weighted average common shares outstanding - diluted		25,366,807				23,606,597
Performance metrics
Yield on LHFI		4.47	%			4.03	%
Yield on interest-earning assets		3.66				3.45
Cost of interest-bearing deposits		0.40				0.33
Cost of total deposits		0.27				0.23
NIM, FTE		3.28				3.12
NIM - FTE, adjusted (3)		3.25				3.05
ROA (annualized)		0.93				1.44
Adjusted ROA (annualized)(1)		1.18				1.42
PTPP ROA (annualized)(1)		1.45				1.64
ROE (annualized)		10.02				15.81
Adjusted ROE (annualized)(1)		12.76				15.55
PTPP ROE (annualized)(1)		15.69				17.96
Efficiency ratio (4)		61.08				56.09
Core efficiency ratio(1)		54.64				51.46

_____________________________________________________
(1)	Adjusted net income, PTPP earnings, adjusted diluted earnings per common share, adjusted ROA, PTPP ROA, adjusted ROE, PTPP ROE, and core 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)	Due to the combined impact of the issuance of common stock shares due to the BTH merger on the quarterly average common shares outstanding calculation compared to the impact of the issuance of common stock shares due to the BTH merger on the year-to-date average common outstanding calculation, and the effect of rounding, the sum of the quarterly earnings per common share may not equal the year-to-date earnings per common share amount.
(3)	NIM - FTE, adjusted, is a non-GAAP financial measure and is calculated for the nine months ended September 30, 2022, by removing the net PAA accretion from the net interest income. For the nine months ended September 30, 2021, 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.
(4)	Calculated by dividing noninterest expense by the sum of net interest income plus noninterest income.

Origin Bancorp, Inc.
Consolidated Quarterly Statements of Income

	Three Months Ended
	September 30, 2022				June 30, 2022				March 31, 2022				December 31, 2021				September 30, 2021
Interest and dividend income	(Dollars in thousands, except per share amounts, unaudited)
Interest and fees on loans	$	79,803			$	55,986			$	51,183			$	53,260			$	53,182
Investment securities-taxable		7,801				7,116				5,113				4,691				3,449
Investment securities-nontaxable		2,151				1,493				1,400				1,493				1,582
Interest and dividend income on assets held in other financial institutions		1,482				1,193				587				686				538
Total interest and dividend income		91,237				65,788				58,283				60,130				58,751
Interest expense
Interest-bearing deposits		7,734				3,069				2,886				2,957				3,255
FHLB advances and other borrowings		2,717				1,392				1,094				1,161				1,118
Subordinated debentures		2,263				1,823				1,801				1,832				1,837
Total interest expense		12,714				6,284				5,781				5,950				6,210
Net interest income		78,523				59,504				52,502				54,180				52,541
Provision for credit losses		16,942				3,452				(327	)			(2,647	)			(3,921	)
Net interest income after provision for credit losses		61,581				56,052				52,829				56,827				56,462
Noninterest income
Service charges and fees		4,734				4,274				3,998				3,994				3,973
Insurance commission and fee income		5,666				5,693				6,456				2,826				3,451
Mortgage banking (loss) revenue		(929	)			2,354				4,096				2,857				2,728
Other fee income		1,162				638				598				702				783
Gain on sales of securities, net		1,664				—				—				75				—
Gain (loss) on sales and disposals of other assets, net		70				(279	)			—				(97	)			(8	)
Limited partnership investment income (loss)		112				282				(363	)			50				3,078
Swap fee income (loss)		25				1				139				(285	)			727
Other income		1,219				1,253				982				6,579				1,191
Total noninterest income		13,723				14,216				15,906				16,701				15,923
Noninterest expense
Salaries and employee benefits		31,834				27,310				26,488				24,718				23,629
Occupancy and equipment, net		5,399				4,514				4,427				4,306				4,353
Data processing		2,689				2,413				2,486				2,302				2,329
Office and operations		2,121				2,162				1,560				1,849				1,598
Loan related expenses		1,599				1,517				1,305				1,880				1,949
Professional services		1,188				420				1,060				923				912
Electronic banking		1,087				896				917				616				997
Advertising and marketing		1,196				859				871				1,147				863
Franchise tax expense		957				838				770				692				598
Regulatory assessments		877				802				626				526				664
Intangible asset amortization		1,872				525				537				194				194
Communications		279				252				281				286				359
Merger-related expense		3,614				807				571				—				—
Other expenses		1,529				835				875				907				720
Total noninterest expense		56,241				44,150				42,774				40,346				39,165
Income before income tax expense		19,063				26,118				25,961				33,182				33,220
Income tax expense		2,820				4,807				5,278				4,860				6,242
Net income	$	16,243			$	21,311			$	20,683			$	28,322			$	26,978
Basic earnings per common share	$	0.57			$	0.90			$	0.87			$	1.21			$	1.15
Diluted earnings per common share		0.57				0.90				0.87				1.20				1.14

Origin Bancorp, Inc.
Consolidated Balance Sheets

(Dollars in thousands)	September 30, 2022				June 30, 2022				March 31, 2022				December 31, 2021			September 30, 2021
Assets	(Unaudited)				(Unaudited)				(Unaudited)							(Unaudited)
Cash and due from banks	$	118,505			$	123,499			$	129,825			$	133,334		$	124,515
Interest-bearing deposits in banks		181,965				200,421				454,619				572,284			227,450
Total cash and cash equivalents		300,470				323,920				584,444				705,618			351,965
Securities:
AFS		1,672,170				1,804,370				1,905,687				1,504,728			1,486,543
Held to maturity, net of allowance for credit losses		11,285				4,288				4,831				22,767			37,702
Securities carried at fair value through income		6,347				6,630				7,058				7,497			10,876
Total securities		1,689,802				1,815,288				1,917,576				1,534,992			1,535,121
Non-marketable equity securities held in other financial institutions		53,899				76,822				45,242				45,192			45,144
Loans held for sale		59,714				62,493				80,295				80,387			109,956
Loans		6,882,681				5,528,093				5,194,406				5,231,331			5,187,288
Less: ALCL		83,359				63,123				62,173				64,586			69,947
Loans, net of ALCL		6,799,322				5,464,970				5,132,233				5,166,745			5,117,341
Premises and equipment, net		99,291				81,950				80,421				80,691			80,740
Mortgage servicing rights		21,654				22,127				21,187				16,220			16,000
Cash surrender value of bank-owned life insurance		38,885				38,742				38,547				38,352			38,162
Goodwill		136,793				34,153				34,153				34,368			26,741
Other intangible assets, net		52,384				15,900				16,425				16,962			3,089
Accrued interest receivable and other assets		210,425				175,159				161,772				141,758			146,219
Total assets	$	9,462,639			$	8,111,524			$	8,112,295			$	7,861,285		$	7,470,478
Liabilities and Stockholders’ Equity
Noninterest-bearing deposits	$	2,667,489			$	2,214,919			$	2,295,682			$	2,163,507		$	1,980,107
Interest-bearing deposits		4,361,423				3,598,417				3,947,714				3,864,058			3,600,654
Time deposits		748,415				489,822				523,783				543,128			578,007
Total deposits		7,777,327				6,303,158				6,767,179				6,570,693			6,158,768
FHLB advances and other borrowings		450,456				894,581				305,560				309,801			309,152
Subordinated debentures		201,687				157,540				157,478				157,417			157,357
Accrued expenses and other liabilities		126,145				109,872				205,213				93,163			139,534
Total liabilities		8,555,615				7,465,151				7,435,430				7,131,074			6,764,811
Stockholders’ equity:
Common stock		153,309				119,038				118,744				118,733			117,480
Additional paid-in capital		518,376				244,368				242,789				242,114			237,928
Retained earnings		410,572				398,946				381,222				363,635			338,387
Accumulated other comprehensive (loss) income		(175,233	)			(115,979	)			(65,890	)			5,729			11,872
Total stockholders’ equity		907,024				646,373				676,865				730,211			705,667
Total liabilities and stockholders’ equity	$	9,462,639			$	8,111,524			$	8,112,295			$	7,861,285		$	7,470,478

Origin Bancorp, Inc.
Loan Data

	At and For the Three Months Ended
	September 30, 2022				June 30, 2022				March 31, 2022				December 31, 2021				September 30, 2021
LHFI	(Dollars in thousands, unaudited)
Commercial real estate	$	2,174,347			$	1,909,054			$	1,801,382			$	1,693,512			$	1,590,519
Construction/land/land development		853,311				635,556				593,350				530,083				518,920
Residential real estate		1,399,182				1,005,623				922,054				909,739				913,411
Total real estate loans		4,426,840				3,550,233				3,316,786				3,133,334				3,022,850
Commercial and industrial		1,967,037				1,430,239				1,358,597				1,454,235				1,435,203
Mortgage warehouse lines of credit		460,573				531,888				503,249				627,078				713,339
Consumer		28,231				15,733				15,774				16,684				15,896
Total LHFI		6,882,681				5,528,093				5,194,406				5,231,331				5,187,288
Less: allowance for loan credit losses ("ALCL")		83,359				63,123				62,173				64,586				69,947
LHFI, net	$	6,799,322			$	5,464,970			$	5,132,233			$	5,166,745			$	5,117,341
Nonperforming assets
Nonperforming LHFI
Commercial real estate	$	431			$	224			$	233			$	512			$	672
Construction/land/land development		366				373				256				338				592
Residential real estate		7,641				7,478				11,609				11,647				9,377
Commercial and industrial		5,134				5,930				8,987				12,306				13,873
Mortgage warehouse lines of credit		385				—				—				—				—
Consumer		74				80				96				100				41
Total nonperforming LHFI		14,031				14,085				21,181				24,903				24,555
Nonperforming loans held for sale		2,698				2,461				2,698				1,754				2,074
Total nonperforming loans		16,729				16,546				23,879				26,657				26,629
Repossessed assets		1,781				2,009				1,703				1,860				4,574
Total nonperforming assets	$	18,510			$	18,555			$	25,582			$	28,517			$	31,203
Classified assets	$	71,562			$	54,124			$	72,082			$	71,232			$	80,165
Past due LHFI (1)		10,866				7,186				21,753				25,615				25,954
Allowance for loan credit losses
Balance at beginning of period	$	63,123			$	62,173			$	64,586			$	69,947			$	77,104
Provision for loan credit losses		15,787				2,503				(659	)			(2,668	)			(4,266	)
ALCL - BTH merger		5,527				—				—				—				—
Loans charged off		1,628				2,192				2,402				3,162				3,035
Loan recoveries		550				639				648				469				144
Net charge-offs		1,078				1,553				1,754				2,693				2,891
Balance at end of period	$	83,359			$	63,123			$	62,173			$	64,586			$	69,947
Credit quality ratios	(Dollars in thousands, unaudited)
Total nonperforming assets to total assets		0.20	%			0.23	%			0.32	%			0.36	%			0.42	%
Total nonperforming loans to total loans		0.24				0.30				0.45				0.50				0.50
Nonperforming LHFI to LHFI		0.20				0.25				0.41				0.48				0.47
Past due LHFI to LHFI		0.16				0.13				0.42				0.49				0.50
ALCL to nonperforming LHFI		594.11				448.16				293.53				259.35				284.86
ALCL to total LHFI		1.21				1.14				1.20				1.23				1.35
ALCL to total LHFI, adjusted (2)		1.29				1.25				1.33				1.43				1.63
Net charge-offs to total average LHFI (annualized)		0.07				0.12				0.14				0.21				0.22

_____________________________________________________
(1)	Past due LHFI are defined as loans 30 days or more past due.
(2)	The ALCL to total LHFI, adjusted is calculated at 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
	September 30, 2022						June 30, 2022						September 30, 2021
	Average Balance			Yield/Rate			Average Balance			Yield/Rate			Average Balance			Yield/Rate
Assets	(Dollars in thousands, unaudited)
Commercial real estate	$	2,046,411		4.64	%		$	1,828,700		4.17	%		$	1,505,731		4.08	%
Construction/land/land development		760,682		5.20				587,872		4.52				527,881		4.10
Residential real estate		1,249,746		4.36				966,363		4.30				936,375		4.14
Commercial and industrial ("C&I")		1,816,912		5.64				1,398,802		4.26				1,492,375		4.14
Mortgage warehouse lines of credit		491,584		4.53				444,851		4.10				660,715		3.58
Consumer		24,137		6.80				15,979		6.03				16,222		5.81
LHFI		6,389,472		4.94				5,242,567		4.26				5,139,299		4.05
Loans held for sale		29,927		4.12				37,678		3.69				72,739		3.85
Loans receivable		6,419,399		4.93				5,280,245		4.25				5,212,038		4.05
Investment securities-taxable		1,547,848		2.00				1,610,400		1.77				853,277		1.60
Investment securities-nontaxable		317,175		2.69				258,178		2.32				280,189		2.24
Non-marketable equity securities held in other financial institutions		73,819		2.10				51,052		4.79				43,725		2.22
Interest-bearing balances due from banks		206,781		2.09				277,800		0.84				610,863		0.19
Total interest-earning assets		8,565,022		4.23				7,477,675		3.53				7,000,092		3.33
Noninterest-earning assets(1)		637,399						467,045						464,721
Total assets	$	9,202,421					$	7,944,720					$	7,464,813
Liabilities and Stockholders’ Equity
Liabilities
Interest-bearing liabilities
Savings and interest-bearing transaction accounts	$	4,157,092		0.66	%		$	3,767,275		0.26	%		$	3,657,625		0.25	%
Time deposits		669,900		0.51				503,325		0.49				582,384		0.67
Total interest-bearing deposits		4,826,992		0.64				4,270,600		0.29				4,240,009		0.30
FHLB advances and other borrowings		538,020		2.00				417,121		1.34				263,956		1.68
Subordinated debentures		186,803		4.81				157,517		4.64				157,321		4.63
Total interest-bearing liabilities		5,551,815		0.91				4,845,238		0.52				4,661,286		0.53
Noninterest-bearing liabilities
Noninterest-bearing deposits		2,582,500						2,288,732						1,965,843
Other liabilities(1)		129,354						143,427						134,079
Total liabilities		8,263,669						7,277,397						6,761,208
Stockholders’ Equity		938,752						667,323						703,605
Total liabilities and stockholders’ equity	$	9,202,421					$	7,944,720					$	7,464,813
Net interest spread				3.32	%					3.01	%					2.80	%
NIM				3.64						3.19						2.98
NIM - (FTE)(2)				3.68						3.23						3.02
NIM - FTE, adjusted (3)				3.61						3.20						2.94

_____________________________________________________
(1)	Includes Government National Mortgage Association (“GNMA”) repurchase average balances of $29.1 million, $35.8 million, and $51.3 million for the three months ended September 30, 2022, June 30, 2022, and September 30, 2021, 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.
(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 quarter ended September 30, 2022, by removing the net PAA 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
	September 30, 2022				June 30, 2022				March 31, 2022				December 31, 2021				September 30, 2021
Calculation of PTPP earnings:	(Dollars in thousands, except per share amounts, unaudited)
Net income	$	16,243			$	21,311			$	20,683			$	28,322			$	26,978
Plus: provision for credit losses		16,942				3,452				(327	)			(2,647	)			(3,921	)
Plus: income tax expense		2,820				4,807				5,278				4,860				6,242
PTPP Earnings	$	36,005			$	29,570			$	25,634			$	30,535			$	29,299
Calculation of PTPP ROA and PTPP ROE:
PTPP earnings	$	36,005			$	29,570			$	25,634			$	30,535			$	29,299
Divided by number of days in the quarter		92				91				90				92				92
Multiplied by the number of days in the year		365				365				365				365				365
PTPP earnings, annualized	$	142,846			$	118,605			$	103,960			$	121,144			$	116,241
Divided by total average assets		9,202,421				7,944,720				8,045,246				7,559,570				7,464,813
PTPP ROA (annualized)		1.55	%			1.49	%			1.29	%			1.60	%			1.56	%
Divided by total average stockholder’s equity	$	938,752			$	667,323			$	722,504			$	715,614			$	703,605
PTPP ROE (annualized)		15.22	%			17.77	%			14.39	%			16.93	%			16.52	%
Calculation of core efficiency ratio:
Net interest income	$	78,523			$	59,504			$	52,502			$	54,180			$	52,541
Less: insurance and mortgage net interest income		1,208				1,082				875				946				1,048
Total noninterest income		13,723				14,216				15,906				16,701				15,923
Less: insurance and mortgage noninterest income		4,737				8,047				10,552				5,683				6,179
Less: gain on fair value of the Lincoln Agency		—				—				—				5,200				—
Less: gain on sale of securities, net		1,664				—				—				75				—
Adjusted total revenue	$	84,637			$	64,591			$	56,981			$	58,977			$	61,237
Total noninterest expense	$	56,241			$	44,150			$	42,774			$	40,346			$	39,165
Less: insurance and mortgage noninterest expense		8,479				8,397				8,626				6,580				6,688
Less: merger-related expenses		3,614				807				571				—				—
Adjusted total noninterest expense		44,148				34,946				33,577				33,766				32,477
Efficiency ratio		60.97	%			59.89	%			62.53	%			56.92	%			57.21	%
Core efficiency ratio		52.16				54.10				58.93				57.25				53.03
Calculation of tangible book value per common share and adjusted tangible book value per common share:
Total common stockholders’ equity	$	907,024			$	646,373			$	676,865			$	730,211			$	705,667
Less: goodwill		136,793				34,153				34,153				34,368				26,741
Less: other intangible assets, net		52,384				15,900				16,425				16,962				3,089
Tangible common equity		717,847				596,320				626,287				678,881				675,837
Less: accumulated other comprehensive (loss) income		(175,233	)			(115,979	)			(65,890	)			5,729				11,872
Adjusted tangible common equity		893,080				712,299				692,177				673,152				663,965
Divided by common shares outstanding at the end of the period		30,661,734				23,807,677				23,748,748				23,746,502				23,496,058
Tangible book value per common share	$	23.41			$	25.05			$	26.37			$	28.59			$	28.76
Adjusted tangible book value per common share	$	29.13			$	29.92			$	29.15			$	28.35			$	28.26
	At and For the Three Months Ended
	September 30, 2022				June 30, 2022				March 31, 2022				December 31, 2021				September 30, 2021
Calculation of adjusted net income:
Net interest income after provision for credit losses	$	61,581			$	56,052			$	52,829			$	56,827			$	56,462
Add: CECL provision for non-PCD loans		14,890				—				—				—				—
Adjusted net interest income after provision for credit losses		76,471				56,052				52,829				56,827				56,462
Total noninterest income		13,723				14,216				15,906				16,701				15,923
Less: GNMA MSR impairment		(1,950	)			—				—				—				—
Less: gain on sales of securities, net		1,664				—				—				75				—
Less: Gain on fair value of the Lincoln Agency		—				—				—				5,200				—
Adjusted total noninterest income		14,009				14,216				15,906				11,426				15,923
Total noninterest expense		56,241				44,150				42,774				40,346				39,165
Less: merger-related expenses		3,614				807				571				—				—
Adjusted total noninterest expense		52,627				43,343				42,203				40,346				39,165
Income tax expense		2,820				4,807				5,278				4,860				6,242
Add: income tax expense		3,946				169				120				(1,108	)			—
Adjusted income tax expense		6,766				4,976				5,398				3,752				6,242
Adjusted net income	$	31,087			$	21,949			$	21,134			$	24,155			$	26,978
Calculation of adjusted ROA and adjusted ROE:
Adjusted net income	$	31,087			$	21,949			$	21,134			$	24,155			$	26,978
Divided by number of days in the quarter		92				91				90				92				92
Multiplied by number of days in the year		365				365				365				365				365
Annualized adjusted net income	$	123,334			$	88,037			$	85,710			$	95,832			$	107,032
Divided by total average assets	$	9,202,421			$	7,944,720			$	8,045,246			$	7,559,570			$	7,464,813
Adjusted ROA (annualized)		1.34	%			1.11	%			1.07	%			1.27	%			1.43	%
Divided by total average stockholders equity	$	938,752			$	667,323			$	722,504			$	715,614			$	703,605
Adjusted ROE (annualized)		13.14	%			13.19	%			11.86	%			13.39	%			15.21	%
Calculation of adjusted EPS and adjusted dilutive EPS:
Numerator:
Adjusted net income	$	31,087			$	21,949			$	21,134			$	24,155			$	26,978
Denominator:
Weighted average common shares outstanding		28,298,984				23,740,611				23,700,550				23,484,056				23,429,705
Weighted average diluted common shares outstanding		28,481,619				23,788,164				23,770,791				23,609,874				23,613,010
Adjusted basic earnings per share	$	1.10			$	0.92			$	0.89			$	1.03			$	1.15
Adjusted diluted earnings per share		1.09				0.92				0.89				1.02				1.14

Origin Bancorp, Inc.
Non-GAAP Financial Measures

	Nine Months Ended September 30,
(Dollars in thousands, except per share amounts, unaudited)		2022				2021
Calculation of PTPP earnings:
Net income	$	58,237			$	80,224
Plus: provision for credit losses		20,067				(8,118	)
Plus: income tax expense		12,905				19,025
PTPP earnings	$	91,209			$	91,131
Calculation of PTPP ROA and PTPP ROE:
PTPP earnings	$	91,209			$	91,131
Divided by number of days in this period		273				273
Multiplied by the number of days in the year		365				365
PTPP earnings, annualized	$	121,946			$	121,842
Divided by total average assets	$	8,401,701			$	7,441,055
PTPP ROA		1.45	%			1.64	%
Divided by total average stockholder’s equity	$	776,985			$	678,223
PTPP ROE		15.69	%			17.96	%
Calculation of core efficiency ratio:
Net interest income	$	190,529			$	162,072
Less: insurance and mortgage net interest income		3,165				3,030
Total noninterest income		43,845				45,492
Less: insurance and mortgage noninterest income		23,336				20,342
Less: gain on sale of securities, net		1,664				1,673
Adjusted total revenue	$	206,209			$	182,519
Total noninterest expense	$	143,165			$	116,433
Less: insurance and mortgage noninterest expense		25,502				20,904
Less: merger-related expenses		4,992				—
Less: other noninterest expense		—				1,613
Adjusted total expense	$	112,671			$	93,916
Efficiency ratio		61.08	%			56.09	%
Core efficiency ratio		54.64	%			51.46	%
	Nine Months Ended September 30,
(Dollars in thousands, except per share amounts, unaudited)		2022				2021
Calculation of adjusted net income:
Net interest income after provision for credit losses	$	170,462			$	170,190
Add: CECL provision for non-PCD loans		14,890				—
Adjusted net interest income after provision for credit losses		185,352				170,190
Total noninterest income		43,845				45,492
Less: GNMA MSR impairment		(1,950	)			—
Less: gain on sales of securities, net		1,664				1,673
Adjusted total noninterest income		44,131				43,819
Total noninterest expense		143,165				116,433
Less: merger-related expense		4,992				—
Adjusted total noninterest expense		138,173				116,433
Income tax expense		12,905				19,025
Add: income tax expense		4,235				(351	)
Adjusted income tax expense		17,140				18,674
Adjusted net income	$	74,170			$	78,902
Calculation of adjusted ROA and adjusted ROE:
Adjusted net income	$	74,170			$	78,902
Divided by number of days in the quarter		273				273
Multiplied by number of days in the year		365				365
Annualized adjusted net income	$	99,165			$	105,492
Divided by total average assets	$	8,401,701			$	7,441,055
Adjusted ROA (annualized)		1.18	%			1.42	%
Divided by total average stockholders equity	$	776,985			$	678,223
Adjusted ROE (annualized)		12.76	%			15.55	%
Calculation of adjusted EPS and Dilutive EPS:
Numerator:
Adjusted net income	$	74,170			$	78,902
Denominator:
Weighted average common shares outstanding		25,263,681				23,413,794
Weighted average diluted common shares outstanding		25,366,807				23,606,597
Adjusted basic earnings per share	$	2.94			$	3.37
Adjusted diluted earnings per share		2.92				3.34