Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
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| I mean obviously, with the dynamic markets we were in, the investment we made in people over the last couple of years, we continue to see benefits from that |
| Seasonal strength in our insurance business, increased production in our mortgage segment and a slight loss in our limited partnership investments in Q4 were all drivers of Q1's increase relative to Q4 |
| So very bullish on this organization |
| I am proud of the actions we took as a team to serve as trusted advisers to our customers |
| And the end of it, our capital position continues to be strong even with AOCI in the picture |
| For Origin, it always comes back to relationships, and I believe that the strength of our relationships will continue to drive long-term success for our company |
| So as I put all those things together, high-quality organization, unbelievably good footprint, excellent partners now in East Texas that are continuing to help this organization with what we think are lift-out teams that are going to continue to show growth not only on the loan side but deposit side |
| From a loan standpoint and credit quality, best credit quality this institution has ever seen with what I think is very good overall quality as we look at existing or new credits that are coming on the book |
| But ultimately, I have tremendous confidence in this stock, in this company |
| Secondly, through the BTH relationship, we feel like we did a very good job from a due diligence standpoint, and they are good in underwriting, but we went through not only internal loan review but external loan review on the entire - well, majority of the portfolio, I can't remember the penetration |
| Noninterest income and noninterest expense both beat our expectations |
| But all said, very pleased with where we are |
| They were longer-term relationships for those folks, and I feel good about where we are |
| The addition of East Texas to our footprint through the BTH acquisition, combined with strong teams in Louisiana and Mississippi, provide continuing opportunity to drive value for our organization |
| I'm so proud of both our disciplined credit culture and the experienced management team around them |
| All this gives me great confidence in the value that Origin will provide to all our stakeholders |
| Being a trusted adviser is one of the central components of our vision statement, and our teams have done a really good job of being advisers to our clients during the first quarter |
| But I'll tell you what, our bankers are doing a good job |
| The economy in our footprint continues to provide opportunity for profitable growth to enhance our franchise value |
| Our foundation is strong, and we will continue to grow relationships that pay off in the long term |
| As we talked about since our IPO, a key differentiator for Origin is the strength and diversity of our deposit franchise |
| I'm proud of the relationships our bankers have built as they continue to enhance our strong community bank deposit franchise |
| So super proud of the effort, and we continue to be very positive and bullish on our rural deposit franchise |
| Our pipeline remains strong and our bankers remain disciplined on pricing and structure |
| And it's been nice to bring our partners in, nice that we feel good about their portfolio, and this is just a normal process that we go through |
| And I think that's very positive because of the granularity |
| As I said last quarter, we have proven throughout our history that we can capitalize on opportunities in uncertain times |
| We manage this company for long-term success, and we are confident in both the strength of this company and the experience of our management team to continue to deliver meaningful value to our employees, customers, communities and shareholders |
| Additionally, our regulatory capital ratios all improved during the quarter despite this excess liquidity, and we continue to remain well capitalized |
| This approach has positioned our portfolio well, as evidenced by the continued diversification of our portfolio as reflected on Slide 13 and by the strong credit metrics as reflected on Slide 14 |
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| And with that, with the added increase and what we think is will be a natural slowdown in growth in the second half, we have, and like I said, a couple of triggers to pull |
| The negative carry of this liquidity cost us roughly $160,000 in net interest expense during Q1 and pressured net interest margin by 6 basis points |
| But again, we're all looking at the same crystal ball and it's a challenge to forecast |
| As a result of these pressures, our net interest margin contracted 37 basis points during the quarter to 3.44% |
| But through that, with how aggressive we are, we saw some weaknesses in these credits |
| Then our expectation is for some level of organic slowdown in the second half of the year so that the second half of the year looks more like mid-single digits |
| If held for a full quarter and assuming the current roughly 20 basis point negative carry, we estimate net interest expense of roughly $200,000 to $300,000, which would pressure net interest margin by approximately 20 basis points |
| I feel that the deposits lost in this cycle will not return to our industry in the near future |
| While we did experience an increase in these metrics during the quarter, both reflect levels below those reported in Q1 of 2022 |
| As we have indicated on previous calls, we continue to believe that the markets we serve will be impacted to a lesser degree by a recession than other areas of the country |
| One quick one on the loan growth slowing in the back half of the year |
| Wally, earlier, you mentioned that the mix shift out of noninterest bearing is something that's a headwind for everyone |
| And they really don't give me any pause, if you will, from an overall deterioration in credit quality in our portfolio |
| Origin has not been immune to these industry pressures, and our noninterest-bearing deposits declined to 27% of total deposits in Q1 from 32% in Q4 and 34% last Q1 |
| The events that occurred in early March only amplified the situation |
| Excluding $1.7 million in net accounting accretion, our adjusted net interest margin also contracted 37 basis points, to 3.36% from 3.73% in Q4 |
| And it's not sitting here looking at deteriorating credit |
| We were watching the H8 data, and it felt like the industry was stable, but we weren't sure if there could be another negative announcement out of somebody that might spook people, so we thought it was prudent to keep liquidity |
| And then what about, just broadly, just rate sensitivity? I mean obviously, these higher rates are putting pressure on deposit costs |
| As we entered 2023, it was clear that we were facing an environment where deposit competition from sources outside the industry were intense |
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