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

Jul 23, 2020 • 09:00 am ET


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


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Drake Mills

people, while maintaining a first-rate customer experience.

Our drive-through's remain open and our lobbies are serving customers by appointment. We also have effectively leveraged our technology infrastructure, which has led to an increased usage of our online and mobile banking channels. These strategies have been successful in managing the health of our employees and customers, as well as highlighting the strategic focus we have in partnering with fintech's to provide a better-than-peer customer experience with our digital platforms.

Next is our continued commitment to serve our customers and communities. Throughout the PPP loan process, our banker did an incredible job of supporting our customers and being responsive to their needs during a critical and challenging time, and they will continue to do so. Lance will get more into the details of where we currently stand with PPP, but again I'm extremely proud of our bankers have respond.

I'm also proud of the fact that we are standing by one of our core values of corporate and individual commitment to our communities by taking a portion of our PPP loan fees and making contributions to a broad range of local charities, food bank, service organization and educational institutions including historically black colleges and universities throughout Louisiana, Mississippi and Texas. Times like these are when our customers and communities need us most. Throughout our history, we've been leaders in our communities and we continue to do that today.

Balance sheet protection is our third strategic area of focus and we took steps in the second quarter to strengthen our position. Our results for the two -- first two quarters have been impacted by provision expense and increases in allowances for credit loss, but our credit quality remains sound and non-performing and past due percentage remained stable during the quarter. We have not experienced credit strain. I'm comfortable with our current portfolio and we are well positioned to defend our balance sheet.

The four strategic area of focus is expense management. On our last call, we told you that expense management was a continued focus of ours and even more so in the current environment. We continue to evaluate all aspects of our business, as well as developing plans to reduce expenses in the near and long-term. Steve will discuss the details around expenses later in the presentation.

Now again into the results of the quarter, starting on Slide 3. Total assets increased to $6.6 billion during the quarter, with one of the drivers being over 3,000 companies to which we made PPP loans totaling approximately $563 million. Net income for the quarter came in just under $5 million or $0.21 per share diluted EPS. We had our highest quarter ever in pre-tax, pre-provision income at $27.1 million, which is 44% higher than our first quarter results. As you can see our net interest income is up nearly $3.5 million in the quarter driven by PPP and mortgage warehouse income. Our non-interest income is up nearly $7 million for the quarter.

I'll turn