Origin Bancorp Inc (OBK)

A. Company Overview

Origin Bancorp Inc. is a financial holding company based in Ruston, Louisiana. Founded in 1912 as Origin Bank in Choudrant, Louisiana, the company has positioned itself as a key player in the banking sector across Texas, Louisiana, and Mississippi. As of December 31, 2023, Origin Bancorp reported total assets of approximately $9.72 billion, total loans held for investment of about $7.66 billion, total deposits of around $8.25 billion, and stockholders’ equity of approximately $1.06 billion.

Capitalizing on a rich historical legacy, Origin is dedicated to offering personalized, relationship-focused banking; its service scope includes businesses, municipalities, and individual clients. The organization has established over 60 locations across various major markets, including Dallas/Fort Worth, East Texas, Houston, North Louisiana, and extending into Mississippi.

Origin Bancorp initiated public trading of its common stock in May 2018 on Nasdaq under the symbol “OBNK”. In May 2023, it transitioned its listing to the New York Stock Exchange (NYSE) under the new ticker symbol “OBK.”

B. Business Segments

Origin Bancorp operates primarily through its wholly-owned bank subsidiary, Origin Bank, which is engaged mainly in community banking. The bank's core activities include attracting deposits from individuals and businesses and using these to originate various types of loans, including commercial, residential mortgage, construction, and consumer loans.

Lending Activities

Among the various lending activities, the commercial loan portfolio encompasses multiple categories:

• Commercial Real Estate Loans: Making up 45.9% of the loans held for investment, these loans are primarily secured by real estate within the bank's geographic footprint.
• Consumer Loans: Includes loans for residential purposes, such as one-to-four family mortgages, along with secured and unsecured loans.
• Commercial and Industrial Loans: These loans facilitate working capital and support various business needs, contributing significantly to the income over the years.
• Mortgage Warehouse Loans: Origin Bank offers loans to mortgage companies, ensuring rapid turnover and facilitating smooth operations in mortgage financing.

C. Markets

Origin Bancorp leverages a diverse geographic footprint, which provides stability and growth prospects. In addition to its established markets in Texas, Louisiana, and Mississippi, recent expansions into South Alabama and the Florida Panhandle signal a strategic push into new territories. The Dallas/Fort Worth and Houston regions are characterized by robust economic activity and diverse industries, offering rich opportunities for lending and deposit growth.

D. Competitive Strengths

Origin Bancorp's competitive edge stems from its ability to maintain strong client relationships through a dedicated team of relationship bankers. Key strengths include:

1. Organic Growth Capabilities: The bank has shown substantial organic growth by actively fostering client relationships and strategically placing branches in high-demand regions.
2. Asset Quality Management: A disciplined approach toward credit risk management is central to maintaining high asset quality.
3. Revenue Diversification: Offering a range of services allows for a more stable revenue stream and enhances service delivery to clients.

E. Technology and Operations

Investment in technology is pivotal for Origin Bancorp as it aims to enhance customer experience and operational efficiency. The bank employs a nationally recognized core data processing platform and integrates various digital banking services, including mobile and online banking.

Regular improvements are made to the IT infrastructure, ensuring increased efficiency in operations and enhanced customer service delivery.

F. Financial Performance

Origin Bancorp has demonstrated consistent growth over the years, supported by a strategic focus on increasing both loans and deposits. The bank's offerings, combining the capabilities of larger institutions with the personalized service of a community bank, have created a loyal customer base, driving steady revenue growth.

The lending portfolio’s composition at the end of 2023 highlighted a significant proportion allocated to commercial loans, which are fundamental to the bank's income generation. The enhanced focus on core deposits ensures adequate funding for future growth while keeping funding costs competitive.

G. Risk Management

Origin Bancorp maintains a conservative credit culture integrated into its lending practices. The risk management strategy focuses on prudent underwriting and reliance on local market knowledge. This enables the bank to manage exposure effectively while addressing various economic conditions.

Mitigation strategies are in place for various types of risk, including credit, operational, and regulatory risks, aligning corporate objectives with a responsible banking approach.

H. Governance and Regulatory Environment

As a financial holding company, Origin Bancorp operates under a robust regulatory framework overseen by various federal and state financial authorities. The company must comply with regulations set by the Federal Reserve, the Securities and Exchange Commission (SEC), and the Federal Deposit Insurance Corporation (FDIC), among others. These regulations encompass requirements on capital structure, risk management practices, and consumer protection laws.

The governance structure is established to ensure transparency, accountability, and adherence to ethical practices across all levels of operation. Regular internal and external audits are conducted to ensure compliance with all regulatory obligations.

I. Future Outlook

Origin Bancorp is strategically positioned for continued growth through organic efforts and selective acquisitions. With plans to expand its footprint and enhance service offerings, the company emphasizes its commitment to delivering unique customer experiences across its markets. Moving forward, the bank aims to adapt to evolving consumer needs and market conditions, ensuring sustained performance and shareholder value.