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Mar 31, 2020
Origin Q1 2020 Earnings Report
Net income decreased due to increases in provision expense driven by economic uncertainty surrounding the impact of COVID-19.
Key Takeaways
Origin Bancorp, Inc. reported a net income of $753,000 for Q1 2020, a decrease compared to the linked quarter and the quarter ended March 31, 2019. The decline was attributed to elevated provision expense due to economic uncertainty related to COVID-19.
Net income for the quarter ended March 31, 2020, was $753,000, compared to $12.8 million for the linked quarter and $14.2 million for the quarter ended March 31, 2019.
Diluted earnings per share for the quarter ended March 31, 2020, were $0.03, compared to $0.55 for the linked quarter and $0.60 for the quarter end March 31, 2019.
Net interest income was $42.8 million for the quarter ended March 31, 2020, compared to $44.1 million for the linked quarter and $42.0 million for the quarter ended March 31, 2019.
Provision expense was $18.5 million for the quarter ended March 31, 2020, compared to provision expense of $2.4 million for the linked quarter and $1.0 million for the quarter ended March 31, 2019.
Forward Guidance
Origin is closely monitoring and reevaluating the ongoing economic effects of COVID-19 on the Company and its customers.
Positive Outlook
- Established a SBA Paycheck Protection Program task force and approved over $480 million in loans under this program as a result of the Coronavirus Aid, Relief and Economic Security (CARES) Act.
- The implementation of Accounting Standards Update ("ASU") No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("CECL").
- Offering forbearance (90 day extensions) and modification agreements to the Company's customers due to COVID-19.
- Tracking pandemic impacted relationships and general economic conditions in our markets.
- Increasing short term liquidity due to economic uncertainty, primarily through Federal Home Loan Bank ("FHLB") advances.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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