Origin Bancorp, Inc. (NASDAQ:OBNK) Q2 2020 Earnings Conference Call - Final Transcript

Good morning, and welcome to the Origin Bancorp, Inc. Second Quarter 2020 Earnings Conference Call. [Operator Instructions]

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

Good morning, and thank you for being with us. We issued our earnings press release yesterday afternoon, a copy of which is available on our website along with the slide presentation that we will refer to during this presentation. Please refer to Slide 2 of our slide presentation, which includes our safe harbor statements regarding forward-looking statements and the use of non-GAAP financial measures.

For those joining by phone, please note the slide presentation is available on our website at www.origin.bank. Please also note that our safe harbor statements are available on Page 5 of our earnings press release filed with the SEC yesterday. All comments made during today's call are subject to the safe harbor statements in our slide presentation and earnings release.

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

At this time, I'll turn the call over to you, Drake.

Thank you, Chris and good morning. In my 37-years of being part of Origin and running this company for the past two decades, I've seen many different cycles throughout my career. As we continue to live and learn through a period of time that no one expected or predicted, I know that leadership, strategic planning, along with strong talent acquisition is what will lead us through this period of time, and not just survive, but end up in a position of strength with an opportunistic attitude.

I can point to multiple strategies that were put in place a couple years ago that significantly enhanced revenue during the second quarter. Our community bank mortgage model and our mortgage warehouse strategy are two examples of this. Our community bank mortgage strategy provided a 71.7% increase in revenue, compared to the same period in 2018, when we began implementing our new strategy. Year-over-year mortgage banking revenue has increased approximately 2.5 times with a similar-sized staff.

Our mortgage warehouse strategy positioned the company to take advantage of dislocation in our market to enhance our portfolio with quality relationships, while driving strong growth in non-interest bearing balances. We believe that our ability to execute on our strategies is what makes us unique in the marketplace.

During the last earnings call, I closed my remarks by highlighting four strategic areas of focus for our company as we navigate through the rest of 2020. First and most important is the health and safety of our employees and customers. This has been at the forefront of our decisions throughout the COVID-19 pandemic and we continue to balance the health and safety of our