Origin Bancorp, Inc.

Please ensure your device is not on mute. May I have your first and last name, please? Apologies. Due to no response, I'm disconnecting your line. Hello? Hello. David Anderson. Thank you. David, may I have your company name, please? I'm just calling the family office. Thank you very much. And lastly, your conference ID number, David. Perfect. I'll be placing you into the attendee line and you'll be muted. Have a great call today.

To 1.18% at quarter end compared to 1.14% as of the prior quarter. For the quarter, our allowance for credit losses increased from 1.29% to 1.35% net of mortgage warehouse. We did not experience any significant changes in our CECL model assumptions for the quarter and the increase was primarily driven by increases in the individually evaluated portion of the reserve associated with our non-accruals. The level of our reserve at 1.35% net of mortgage warehouse compares to a level of 1.31% at year-end 2023. Lastly, as the total ADC and CRE, we continue to have ample capacity to meet the needs of our clients and grow this segment of our portfolio, reflecting funding to total risk-based capital a 47% for ADC, and 235% for CRE. I'll now turn it over to Wally.

Thanks, Jim, and good morning, everyone. Turning to the financial highlights, in Q3, we reported diluted earnings per share of 27 cents. As you can see on slide 26, the combined financial impact of notable items during the quarter equated to a net expense of $23.3 million, equivalent to 59 cents in EPS pressure. On a pre-tax, pre-provision basis, we reported $47.8 million. Excluding $7.9 million in net benefits from notable items in Q3 and $15.6 million in net pressures in Q2, pre-tax, pre-provision earnings increased to $39.9 million from $37.1 million. On the balance sheet side, loans decreased 1.9 percent sequentially and decreased 0.6 percent when excluding mortgage warehouse. Total deposits increased 2.6 percent during the quarter and 2.9 percent excluding brokered. Importantly, noninterest-bearing deposits grew 8.6 percent sequentially, improving to 24 percent of total deposits. Both total and noninterest-bearing deposits also increased on an average basis, up 0.9 percent and 1.1 percent, respectively. As Lance mentioned, we are excited about the momentum we are seeing from our relationship managers across our markets, and we remain optimistic that loan production is accelerating, though paydowns have remained a near-term headwind to reported loan balances. While we currently are anticipating that loan growth will return in Q4, the continued declines in Q3 lead us to reduce our loan growth guidance from up low single digits to essentially flat for the year. Given the positive momentum we have seen on the deposit side of the balance sheet and the typically strong seasonal inflows in Q4, we are maintaining our deposit growth guidance of low single digits for the year. Turning to the income statement, net interest margin expanded four basis points during the quarter to 3.65%, in line with our expectations. Driving most of this expansion was increased interest income from our securities portfolio, in large part due to the portfolio optimization trade executed during Q2. Moving forward, as you can see in our outlook on slide four, and due primarily to the expectation of an additional Fed rate cut, we tightened our margin guidance range to 3.65% in Q4-25 and 3.60% for the full year, plus or minus three basis points. Our modeling now considers 25 basis point rate cuts in each of October and December, as opposed to only December in our prior guide. Shifting to noninterest income, we reported $26.1 million in Q3. Excluding $9 million in net benefits from notable items in Q3 and $14.6 million in net pressures in Q2, noninterest income increased to $17.1 million from $16 million in Q2. due in large part to the addition of 1.2 million of equity method investment income from increasing our ownership in Argent Financial to over 20%. Our non-interest expense was basically flat at $62 million in Q3. Excluding 1 million of notable items in both Q3 and Q2, non-interest expense increased slightly to 61.1 million from 61.0 million in Q2, in line with our expectations. We are maintaining our guidance for Q4 and lowering our guidance slightly for the full year to down low single digits from flat to down slightly. Lastly, turning to capital, we note that Q3 tangible book value grew sequentially to $33.95, the 12th consecutive quarter of growth, and the TCE ratio ended the quarter at 10.9%, flat from Q2. As shown on slide 25, all of our regulatory capital levels remain above levels considered well capitalized. As such, we remain confident that we have the capital flexibility to take advantage of any capital deployment opportunities to drive value for our shareholders. In fact, during the quarter, we repurchased 265,248 shares at an average price of $35.85. Furthermore, We anticipate the full redemption of the remaining $74 million of subordinated debt on our balance sheet on November 1st, which will allow us to save $3 million in net annual increased interest expense. With that, I will now turn it back to Drake.