Origin Bancorp, Inc. (NYSE:OBK) Q3 2023 Earnings Conference Call October 26, 2023 9:00 AM ET

Company Participants

Chris Reigelman - Director, IR

Drake Mills - Chairman, President and CEO

Lance Hall - President and CEO, Origin Bank

Jim Crotwell - Chief Risk Officer

Wally Wallace - CFO

Conference Call Participants

Matt Olney - Stephens

Michael Rose - Raymond James

Kevin Fitzsimmons - D.A. Davidson

Graeme Smethurst - Piper Sandler

Operator

Good morning and welcome to the Origin Bancorp, Inc Third Quarter Earnings Conference Call. The format of this call includes prepared remarks from the company, followed by a question-and-answer session. [Operator Instructions]

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

Chris Reigelman

Good morning and thank you for joining us today. We issued our earnings press release yesterday afternoon. A copy of which is available on our website along with a slide presentation that we'll refer to during this call. Please refer to page two of our slide presentation, which includes our Safe Harbor statements regarding forward-looking statements and 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 five of our earnings release filed with the SEC yesterday.

All comments made during today's call are subject to 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; President and CEO of Origin Bancorp, Lance Hall; our Chief Financial Officer, Wally Wallace; Chief Risk Officer, Jim Crapo; our Chief Accounting Officer, Steve Brolly; and our Chief Credit and Banking Officer, Preston Moore. After the presentation, we will be happy to address any questions you may have.

Drake, the call is yours.

Drake Mills

Thanks Chris. Origin reported solid earnings this quarter as our team remain focused on executing our strategic plan and delivering for our customers and communities. Economic activity is robust throughout our markets and our credit metrics remained clean. As we've seen throughout the industry, the deposit environment remain extremely competitive. Even with that, I'm optimistic that our bankers will continue to bring new deposit relationships to the bank.

This quarter's results exceeded our expectations, as pre-tax pre-provision upside was driven by margin stability. We executed a trade in our securities portfolio late in the quarter that will benefit our net interest margin and EPS moving forward and allowed us to pay down borrowings, which reduced our asset size. As I discussed last quarter, we remain strategic and managing below the $10 billion threshold through this year, and finished the third quarter with total assets of $9.7 billion. I'm also extremely proud of our credit trends as classified assets decreased 20% from the linked quarter and NPAs were stable.