 RUSTON, La., July 22, 2020 GLOBE NEWSWIRE -- Origin Bancorp, Inc. Nasdaq: OBNK Origin or the Company, the holding company for Origin Bank the Bank, today announced net income of 5.0 million for the quarter ended June 30, 2020. This represents an increase of 4.2 million from the quarter ended March 31, 2020, and a decrease of 7.3 million from the quarter ended June 30, 2019. Diluted earnings per share for the quarter ended June 30, 2020, was 0.21, up 0.18 from the linked quarter and down 0.31 from the quarter ended June 30, 2019. Pre-tax pre-provision earnings for the quarter was 27.1 million, a 44.0 increase on a linked quarter basis, and a 59.2 increase on a prior year quarter basis, while the efficiency ratio declined to 58.5, a 722 basis point decrease from the linked quarter. I am extremely proud of how our employees have risen to meet each and every challenge that has come our way in 2020, and how they continue to make decisions that reflect the values and purpose that have been our foundation for more than a century, said Drake Mills, chairman, president and CEO of Origin Bancorp, Inc. As we continue to work through the uncertainty surrounding the coronavirus pandemic, Origin remains focused on achieving our goals and strategically positioning the Company to provide long-term value to customers, shareholders, employees and communities.Financial Highlights Net income for the quarter ended June 30, 2020, was 5.0 million, compared to 753,000 for the linked quarter and 12.3 million for the quarter ended June 30, 2019. Pre-tax pre-provision earnings hit an historic high of 27.1 million for the quarter ended June 30, 2020, compared to 18.9 million for the linked quarter and 17.1 million for the quarter ended June 30, 2019. Diluted earnings per share for the quarter ended June 30, 2020, were 0.21, compared to 0.03 for the linked quarter and 0.52 for the quarter ended June 30, 2019. Provision expense was 21.4 million for the quarter ended June 30, 2020, compared to provision expense of 18.5 million for the linked quarter and 2.0 million for the quarter ended June 30, 2019. Growth in total loans held for investment LHFI was robust, totaling 5.31 billion at June 30, 2020, an increase of 831.0 million, or 18.5, from March 31, 2020, and an increase of 1.33 billion, or 33.3, from June 30, 2019. LHFI growth, excluding Paycheck Protection Plan PPP loans, net of deferred fees and costs, increased 281.9 million, or 6.3, compared to March 31, 2020, and 778.5 million, or 19.5, compared to June 30, 2019. Total deposits at June 30, 2020, were 5.37 billion, an increase of 816.0 million, or 17.9, compared to 4.56 billion at March 31, 2020, and an increase of 1.52 billion, or 39.4, compared to 3.86 billion, at June 30, 2019. Book value per common share was 26.16 at June 30, 2020, compared to 25.84 at March 31, 2020. Tangible book value per common share was 24.84 at June 30, 2020, compared to 24.51 at March 31, 2020. Noninterest income hit a new historic high for the quarter ended June 30, 2020, driven by 10.7 million in mortgage banking revenue for the current quarter compared to 2.8 million for the linked quarter and 3.3 million for the quarter ended June 30, 2019. PPP loans, gross of deferred fees and costs, totaled 563.6 million, at June 30, 2020, supporting approximately 63,300 jobs impacted by COVID-19.Coronavirus COVID-19 Origin has continued to meet customers needs while keeping the safety and well-being of its employees and customers as its top priority. In addition to the COVID-19 precautions referenced in the Companys earnings release for the first quarter of 2020, the Company has enacted a number of additional targeted safety precautions, including requiring employees to wear face masks unless working in an office or location that permits social distancing, enhancing the Companys sanitation protocols, implementing return to work screening protocols following potential exposures andor subsequent to employee travel as well as other measures consistent with applicable federal, state, and local guidelines to promote the safety and health of the Companys employees and customers. The Companys offices and branches all remained open during the second quarter, with all drive-thrus fully operational, however, lobby access is by appointment. As of June 30, 2020, approximately 33 of the Companys employees were working remotely. Origin is closely monitoring and re-evaluating the ongoing effects of COVID-19 on the Company, its employees and its customers, as well as federal, state and local guidelines in the jurisdictions in which it operates.Credit Quality The COVID-19 pandemic has continued to have a severe impact on the U.S. economy leading to severe unemployment and a recession. Consequently, the deteriorating economic outlook affected the Companys earnings for the second quarter and caused the Company to significantly increase its allowance for credit losses during the first half of 2020.The Company recorded provision expense of 21.4 million for the quarter ended June 30, 2020, compared to provision expense of 18.5 million for the linked quarter and 2.0 million for the quarter ended June 30, 2019. The increase in provision expense from the linked quarter was driven by the effect of the COVID-19 pandemic on the economy, particularly due to higher levels of unemployment and extensive uncertainty regarding expectations of an economic recovery which extended our estimate of the loss reversion period from 12 months to 18 months, thereby impacting key qualitative factors within the Companys provision model. The increase from June 30, 2019, was primarily driven by the economic uncertainty affecting the key business sectors as discussed below.Due to the ongoing economic impact of the COVID-19 pandemic and governmental efforts to contain it, the Company believes that certain sectors of the U.S. economy may be more affected than others. Some of the sectors that may experience a more significant impact include assisted living, nonessential retail, restaurants, energy and hotels. Excluding PPP loans, at June 30, 2020, the Company had 547.6 million, or 11.5, of its LHFI invested in these sectors and, while the Company has significantly increased its allowance for credit losses in the event the Companys loan portfolio experiences losses in the future, the allowance is a current estimate and may be subject to change. Excluding PPP loans, nonperforming LHFI in these sectors impacted by COVID-19 was 7.6 million at June 30, 2020, while past due LHFI, excluding PPP loans, defined as loans 30 days or more past due, as a percentage of LHFI, excluding PPP loans, in these sectors impacted by COVID-19, was 1.3 at June 30, 2020. For more information on Origins COVID-19 impacted sectors, please see the Investor Presentation furnished to the SEC on July 22, 2020, and on Origins website at under the Investor Relations, News Events, Events Presentations link.During the quarter ended June 30, 2020, the Company had net charge-offs of 6.5 million compared to net charge-offs of 1.1 million for the linked quarter. The Companys net charge-off ratio for the quarter ended June 30, 2020, was 0.53, compared to 0.11 for the quarter ended March 31, 2020. Total nonperforming LHFI were 30.0 million at June 30, 2020, compared to 33.0 million and 30.5 million at March 31, 2020, and June 30, 2019, respectively. The reduction in nonperforming loans from March 31, 2020, was positively impacted by our sale of an assisted living loan for 3.2 million and charge-offs of 5.9 million of existing nonperforming loans during the quarter, and was offset by three new nonaccrual loan relationships that totaled 6.7 million at June 30, 2020.Allowance for credit losses on loans as a percentage of LHFI was 1.33 at June 30, 2020, compared to 1.25 and 0.92 at March 31, 2020, and June 30, 2019, respectively. Excluding PPP loans and mortgage warehouse lines of credit, the allowance for credit losses on loans as a percentage of total LHFI was 1.75 at June 30, 2020. The allowance for credit losses on loans as a percentage of nonperforming LHFI was 234.53 at June 30, 2020, compared to 169.72 and 120.36 at March 31, 2020, and June 30, 2019, respectively. The increase in the allowance for credit losses was primarily due to the expected impact of COVID-19 on the Companys loan portfolio. Classified assets increased 25.4 to 100.3 million at June 30, 2020, compared to 80.0 million at March 31, 2020, and 80.1 million at June 20, 2019, primarily due to the deteriorating financial condition of borrowers impacted by the COVID-19 pandemic. Excluding PPP loans, classified loans as a percentage of LHFI and as a percentage of total risk-based capital at the Origin Bancorp, Inc. level were 2.02 and 13.46, respectively, at June 30, 2020, reflecting a small increase from 1.92 and 12.87, respectively, at June 30, 2019. As more information becomes available, including ongoing evaluation of the economic impact of the COVID-19 pandemic on the Company and its borrowers, the Company will update its allowance analysis, which could lead to further increases to its allowance for credit losses on loans.Total past due LHFI as a percentage of LHFI, was 0.45 0.50 excluding PPP loans at June 30, 2020, compared to 1.14 at March 31, 2020, and 0.80 at June 30, 2019. Past due LHFI have decreased for the comparable periods primarily due to COVID-19 forbearances granted in conjunction with the Coronavirus Aid, Relief and Economic Security Act CARES Act despite noncompliance with the loans contractual terms. 