Good morning, welcome to the Origin Bancorp, Inc first quarter earnings conference call. My name is David, I will be your Evercall coordinator. The format of this call includes prepared remarks from the company, followed by a question and answer session. Please note that all participants will be on a listen-only mode until the Q&A portion of the call. Also note, this event is being recorded. I would now like to turn the conference over to Chris Reigelman, Head of Investor Relations. Please, Chris, go ahead. Good morning, 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 the slide presentation that we will refer to during this call. Please refer to slide 2 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 7 of our earnings release filed with the SEC yesterday. All comments made during today's call are subject to the 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 Bank, Lance Hall. Our Chief Financial Officer, Wally Wallace, Chief Risk Officer, Jim Crotwell, Chief Accounting Officer, Steve Brolly, and our Chief Credit and Banking Officer, Preston Moore. After the presentation, we'll be happy to address any questions you may have. Drake, the call is yours. Thank you, Chris. Origin has consistently focused on long-term strategies that have guided us through multiple cycles throughout our 111-year history, and unfortunately, I've been here a third of that time. 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. Just as we have in the past, we are positioned to take advantage of the opportunities presented during these times. As we entered 2023, it was clear that we were facing an environment where deposit competition from sources outside the industry were intense. Our primary strategic focus was to protect our deposit franchise while adding deposit growth. As with most strategies, they come with a cost, but generally pay long-term dividends. The events that occurred in early March only amplified the situation. I feel that the deposits lost in this cycle will not return to our industry in the near future. Considering these issues and working through our conservative management model, we made a decision to take on excess liquidity to support possible deposit outflows. I am proud of the actions we took as a team to serve as trusted advisors to our customers, and as a result, our deposit trends in March are stable and we increased total deposits for the quarter. 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. There were many positives that took place this quarter. Our tangible common equity ratio ended the quarter at 8% despite the excess liquidity on our balance sheet. Tangible book value grew nearly 6% during the quarter to $26.53. Our loan portfolio, excluding mortgage warehouse, grew 3.4%. Our credit quality remains pristine, with net charge-offs in the single digits and non-performing assets of just 22 basis points. Non-interest income and non-interest expense both beat our expectations. Look, I continue to be bullish on Origin. This experienced management team and this company have been through multiple cycles. While each cycle is different, we have come out stronger at the end. We are a proven organic grower with a franchise that expands across some of the most dynamic growth markets in the country. We have rural deposit base throughout North Louisiana, Mississippi, and now East Texas. All of these markets have customers whose loyalty stretches generations. I'm so proud of both our disciplined credit culture and the experienced management team around me. All this gives me great confidence in the value that Origin will provide to all our stakeholders. I turn it over to Lance. Thanks, Drake. Being a trusted advisor is one of the central components of our vision statement, and our teams have done a really good job of being advisors to our clients during the first quarter. Our bankers were proactive and responsive to our clients in providing guidance and being a resource. One of our primary areas of focus for our teams as we started 2023 was centered around our calling efforts and emphasis on deposit growth. This showed in the first quarter as we grew deposits in almost all of our markets. In fact, in Q1, our account openings were up 46% compared to Q1 2022. As we talked about since our IPO, a key differentiator for Origin is the granularity of our customer base and their industries, as well as the geographic mix. Since the events of early March, deposit portfolio granularity has come into focus. I'm proud of the relationships our bankers have built as they continue to enhance our strong community bank deposit franchise. Wally will provide more detail about our deposit mix later in the presentation. In the first quarter, we continued our disciplined approach to building relationships, growing loans 3.4%, excluding mortgage warehouse. Our pipeline remains strong and our bankers remain disciplined on pricing and structure. Our bankers also understand that our ability to grow deposits is critical to continued loan growth. As we've done in previous cycles of disruption, we have the team in place to capitalize on the right opportunities within our markets. We are laser-focused on loan and deposit growth, pricing, credit quality, liquidity, and capital. We will never lose sight of what makes Origin unique, our culture. Our employees' commitment to our culture into relationships is what has made Origin stand out. We will continue to execute on our long-term strategy and provide value to our employees, customers, communities, and shareholders. Now, I'll turn it over to Jim. Thanks, Lance. As Drake and Lance both mentioned, we continue to focus on relationship banking to drive credit quality as we adhere to sound and consistent underwriting throughout all phases of the economic cycle. 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. Past due loans held for investment remains stable at only 0.16% as of March thirty-first. Classified loans into the quarter at 1.17% of total loans held for investment, while non-performing loans into the quarter at 0.23% of total loans held for investment. While we did experience an increase in these metrics during the quarter, both reflect levels below those reported in Q1 of 2022. For the quarter, the $7.1 million increase in non-performing loans held for investment primarily consisted of six relationships, five of which were acquired. The review of the underlying collateral of these relationships resulted in a current allowance of $1.3 million. Lastly, net charge-offs for the quarter came in at 0.07% on an annualized basis. During the quarter, we increased our allowance for credit losses, $4.8 million to $92 million, increasing from 1.28% to 1.30% as a percentage of loans held for investment net of mortgage warehouse. While our portfolio continues to reflect strength and resiliency, we felt an incremental increase in our reserve was appropriate given the current economic headwinds. The strength of our portfolio continues to be evidenced by the level of our allowance to non-performing loans at 539% for Q1 2023, compared to 294% for Q1 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 recession than other areas of the country. With that said, we will continue to closely monitor the impact of rising rates and the likelihood of an economic recession on our portfolio. Lastly, we felt it'd be beneficial to share insight into our CRE office portfolio, which represents only 5% of our portfolio. As reflected on slide 15, our CRE office portfolio is well-positioned, as evidenced by an average loan size of $2.2 million and a weighted average loan-to-value of 53%. As to credit performance, this sector reflects no past dues, only 0.22% in classifieds, no non-performing, and no charge-offs. The performance of this sector is again evidence of our relationship-focused approach. In summary, we continue to be very pleased with the performance and position of our portfolio. I'll now turn it over to Wally. Thanks, Jim, and good morning, everyone. Turning to the financial highlights. In Q1, we reported diluted earnings per share of $0.79. On an adjusted basis, Q1 EPS were $0.78 after excluding $144,000 in gain on sale of securities. Jumping straight to deposits. Our deposits grew 5.1% or over 20% annualized during Q1. These numbers include $284 million in brokered deposits. We added brokered deposits in February to pay down borrowings due to favorable pricing. Excluding these deposits, growth was still a strong 1.5% or about 6% annualized. As you can see in our presentation on slide 17, we have provided some new disclosures around our deposits. Note the granularity of our commercial deposit base, where no industry comprises more than 7% of our total deposit portfolio. Furthermore, note the geographic dispersion of our deposits across our commercial, consumer, and public funds deposit portfolios. Notably, at the end of 2022, our uninsured and uncollateralized deposits comprised 44% of our total deposits. However, following the events of early March, we have seen an unsurprising shift of uninsured customer deposits into the IntraFi Cash Service program, and uninsured and uncollateralized deposits comprised 38% of total deposits at the end of Q1. So far in April, this shift has continued, though at a slower pace. A trend we have noted across the industry has been a clear shift of non-interest-bearing deposits into interest-bearing accounts, whether at banks or outside of the system. Origin has not been immune to these industry pressures, and our non-interest-bearing deposits declined to 27% of total deposits in Q1 from 32% in Q4 and 34% last Q1. This shift in deposit mix, combined with the need to increase deposit pricing, has led to an acceleration in deposit betas over the past two quarters. As of Q1, our cumulative total deposit beta now stands at 36%. We anticipate beta will continue to increase at least for the next quarter or two. As a result of these pressures, our net interest margin contracted 37 basis points during the quarter to 3.44%. 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. As Drake mentioned, following the events of early March, we prudently decided to add $700 million in excess liquidity to our balance sheet. 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. We are currently carrying roughly $525 million in excess liquidity on balance sheet and will likely keep it over the near term at least. 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-$300,000, which would pressure net interest margin by approximately 20 basis points. Lastly, on liquidity. Through our various sources of liquidity, including the FHLB, the Fed's Bank Term Funding Program and discount window, and various lines of credit, we have approximately $4.4 billion in available liquidity on top of the nearly $900 million in FHLB advances already on our balance sheet at the end of Q1. Moving on to fee income. We reported $16.4 million in Q1. Excluding $144,000 in gains on sale of securities, our adjusted fee income was $16.2 million, up from $13.4 million in Q4. 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. Our non-interest expense decreased to $56.8 million from $57.3 million in Q4. However, excluding our merger-related expense in Q4, non-interest expense increased slightly to $56.8 million from $56.1 million. Of note, occupancy and equipment expense increased roughly 11% to $6.5 million from $5.9 million in Q4 due to the planned addition of one new banking center and a mortgage production office. Turning to capital, it is worth noting that our TCE ratio remains above 8% despite the pressures of the excess liquidity we added in early March. Excluding $525 million in excess liquidity, we calculate our TCE ratio would have been 8.5%. Additionally, our regulatory capital ratios all improved during the quarter despite this excess liquidity, and we continue to remain well capitalized. Lastly, given the events of early March, we feel it is prudent to note that our $11.2 million in held to maturity securities are immaterial. Unrealized losses in these securities would have no impact to our capital ratios were they classified as available for sale. With that, I will now turn it back to Drake. Thanks, Wally. As I said last quarter, we have proven throughout our history that we can capitalize on opportunities in uncertain times. Our foundation is strong, and we will continue to grow relationships that pay off in the long term. The economy in our footprint continues to provide opportunity for profitable growth to enhance our franchise value. We are uniquely positioned with the right teams in place to take advantage of growth in Dallas, Fort Worth, and Houston. 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. During this month of March, considering what took place with two of the largest bank failures in U.S. history, I was proud to watch our employees not only respond to our customer needs, but remain engaged in our communities with meaningful conversations about banking in the industry. We didn't shy away from the tough conversations. Matter of fact, we initiated the conversations. This episode didn't change and will not change our long-term strategy. Our team will not be distracted by short-term strategies that would amplify our short-term results but compromise our long-term value. Instead, the strategic moves we made in March were designed to position us to continue to execute our strategy. I'm equally proud of how our team celebrated our culture this month. Each year, we dedicate a time for us to reflect on our accomplishments, celebrate our well-defined culture, and recommit ourselves to our vision and values. I'm thankful for our employees and their unwavering loyalty to our customers and our brand. We will never lose sight of our commitment to our culture and building long-term relationships. We will continue to make the right decisions to ensure our success and drive shareholder value. Thank you for being on the call today. We will now open the call for questions. Thank you. Ladies and gentlemen, at this time, we will conduct a question and answer session. If you'd like to ask a question, please press star one on your telephone keypad in order to enter the queue. Or if you have joined via web, press the Raise Hand icon on the right side of your Deal Roadshow screen. Again, press star one on your telephone keypad to enter the queue or the Raise Hand icon on the right side of your Deal Roadshow screen. We'll pause here briefly to allow any questions to generate. Our first question comes from Matt from Stephens, Inc. Your line is open, Matt. You may proceed. Hey, thanks. Good morning, everybody. Morning, Matt. I want to start with the NIM discussion. Wally, you provided some good details on the excess liquidity and the impact on that side. On the other side, the broker deposits, what was the rate on that $275 million of brokered? Do you still hold these today? I guess just lastly on this topic, just trying to get a better idea of what the incremental funding cost is today, for just incremental, new deposits. Thanks. Morning, Matt. The initial broker deposit trade that we put on came on at 4.90%. Incremental deposits or wholesale funding now is coming in around 5.00%. I think a point that we want to make around broker deposits is we made that decision that to move those over. One, it was a positive carry to pay off the FHLB, and we are now going to fund wholesale using broker, at least for the time being, assuming that the trade-off is positive on cost. Got it. Okay. That's helpful, Wally. What about just broadly just rate sensitivity? I mean, obviously these higher rates are putting pressure on the deposit cost. I guess I'm kind of curious if and when we see a cut from the Fed, curious about the expectations on the margin. I know that's something that we've been talking about for a while. Didn't know if there's more clarity there as far as plans for the balance sheet or there's still more work to be done there. Thanks. Okay. Matt, we remain asset sensitive. I'm gonna answer your question, but I'm gonna answer a different question first. If we assume that we get another 25 basis point hike from the Fed, I would tell you that we are less asset sensitive today than we were a year ago. We've used up a significant portion of our asset sensitivity, but we do remain asset sensitive. Should we see a cut from the Fed, we don't think the impact would be that meaningful for the first, say, three or four cuts. Our models assume that down 100, that'd be a 1-1.5% hit to NII, which equates to about 4 basis points to NIM. Okay. Okay. That's helpful, Wally. Just lastly from me. Matt. Yeah. Matt, I would like to add to the broker deposit conversation because I think this is meaningful. We took those broker deposit last group down in February because we paid that off to replace some higher cost debt impacting loan deposit ratio. That was not taking on broker deposits because of what happened in March. Yep. Okay. Fair, fair point, Drake. Thanks for that. I was going to shift over to the credit discussion. I think you mentioned that 6 nonperformers that were added, 5 that were acquired. Any more color on these that were added to nonperformer? Any theme seen by loan type? Of the 5 that were acquired, I guess these were downgraded. Is it because it was a newer relationship that you guys maybe don't know the borrower as much, or was there something incremental that deteriorated in recent months from the borrower? Just any kind of color on those specific 5 that were downgraded that were acquired. Thanks. Yeah. Matt, I'm going to let Jim go through some numbers on this because they do an excellent job. First off, be mindful of how aggressive we are on credit. 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. We went through not only internal loan review, but external loan review on the majority of the portfolio. I can't remember the penetration rate. I think it was 60% or so. Through that, with how aggressive we are, we saw some weaknesses in these credits, and as we always do, took them into a substandard classification as we work through it. I think out of that $10 million, what's frustrating to me is to read some of the headlines that were published. When you look at our overall credit quality, it gives us room to be able to be aggressive with these. I think we might see about $1 million-$1.4 million in potential loss in this $10 million worth of credit. I think we did the right thing in addressing this relationship. Look, with BTH and bringing them into the fold, this is opportunities for us to make sure that we don't have any deterioration portfolio. There wasn't anything that was consistent with these credits. They were longer term relationships for those folks, and I feel good about where we are. Jim, anything you want to add to that? Matt, I would just add that in some of these, you know, in the narrative that we discuss, we try to quantify how much we reserve we have on these to kind of give folks some comfort of these particular relationships. There's no, there's no comment from an industry perspective from that front. You know, one of the things I would say, there's a lot of positives happening in these very credits and some of which we're looking to reduce our overall exposure, some maybe perhaps even exit. There's some positive things going on with family, you know, coming in and working toward taking over some of the debt, also looking towards some reduction. As we've kind of worked these relationships, and to Drake's point, you know, we went ahead and were very conservative and put them on nonaccrual. I would say I'm positive as to the outlook and what we're going to accomplish on these particular credits. They really don't give me any pause, if you will, from an overall deterioration in credit quality in our portfolio. I would add to that, Matt, that when you look at our numbers through the quarter and where we are with 22 basis points of non-performing total loans, compared to our peers, we're still in very good shape. Yep. Would, I would agree. Okay, I'll step back in the queue. Thank you. Thank you, Matt. Our next question comes from Michael from Raymond James. Your line is open. You may proceed. Hey, good morning, everyone. Thanks for taking my questions. Just wanted to go back to Wally, your comment on the liquidity impact. I know you said that you expect that to stick around kind of in the nearer term. I think I heard a 20 basis point impact. Was that incremental, or is that just a full quarter impact? If you can just kind of walk through outside of that, some of the drivers on both the loan repricing side and then kind of expectations for betas here in the nearer term on the deposit side. Thanks. Right. Starting on the liquidity, Michael, that 20 basis points is not incremental. Were we to hold this liquidity for the entire quarter, it would be another 14 basis point impact to net interest margin. We took the liquidity. We thought it was the conservative, prudent act to do. We took it starting the Friday after Silicon Valley's announcement. We added on that following Monday. We've let some of it roll off, but we thought it remained prudent to keep the liquidity on at least through earnings season. We weren't sure what other banks were gonna show in their deposits. 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. We thought it was prudent to keep the liquidity. Our expectation is that if trends continue to look to be stable, we will go ahead and let that liquidity roll off. But we don't know yet when exactly that point in time will be. It's hard to tell you what we think the actual pressure is gonna be due to liquidity. The best way we thought we could do it is just tell you what it is, and if we have it for the whole quarter, that's what it will cost us. You had a second part to your question. I might throw it to Drake for some bigger picture comments, and then we can dig in if you want. Yeah. Michael, I think on the other side of the equation, when you look at the ten-year curve and the inverse aspect of that, you know, when you look at our single-family residential portfolio and also mortgage warehouse, certainly not doing us any favors there. We are focusing on pricing and looking at that portfolio as a whole and probably slowing down. We're pretty much where we want to be on single-family residential anyhow at this point. Those two asset classes are certainly having their impact on NIM at this point. Yeah. The follow-up question was just on the, you know, expectations for further, you know, beta increases from here and cost increases. Loan deposit ratio was down a little bit, obviously, given the brokered add. Then just kind of expectations on the kind of loan repricing side, you know, to the extent that you can provide just what's, you know, kind of maturing over the next, you know, couple quarters would be helpful. Thanks. Michael, let's talk about this just kind of holistically, what we think the impact from deposit pricing moves and from new loan yields and loan repricing could be to net interest margin. We're all kind of looking into the same crystal ball, and I will tell you that it is, it's hard right now for us to forecast what exactly we think the net interest margin is gonna be. Here's what we think. I said in my prepared remarks that we do think that the cumulative deposit beta will continue to increase. We do continue to see a shift in the deposit mix, though it feels like that rate of change is slowing. If you take the liquidity out of the picture, right? You add back that 6 basis points to NIM in the first quarter and you look at the quarter-over-quarter change, it was about 30 basis points. We do not expect that the pressure to net interest margin, excluding excess liquidity, will be that high. If you then layer in the liquidity however you want, you'll get to some number that's near us. We would expect and hope to see continued stabilization and see a trough in net interest margin in the second or third quarter and then stabilization from there. That's how we're thinking about it. Again, we're all looking at the same crystal ball, and it's a challenge to forecast. No, appreciate it. Mine's equally cloudy. Maybe just one final follow-up for me. Just, you know, this quarter's loan growth was really good. Just wanted to get a sense of how much of that was, you know, fund up of, you know, existing construction projects or just funding of existing commitments. I think previously you talked about, you know, kind of more of a mid-single digit, you know, ex-warehouse growth. Then if you can just, you know, finally comment on warehouse, given that the period imbalance was just a lot higher than the average. Just wanted to get kind of thoughts near term. Thanks, all. Yeah. Hey, Michael, good morning. This is Lance. You're exactly right. I mean, obviously with the dynamic markets we're in, t he investment we made in people the last couple of years, we continue to see benefits from that. we had about $100 million this quarter that were draws on projects that we've booked in 2022. we think that growth that we saw in Q1 will look very similar in Q2. our expectation is for, you know, some level of organic slowdown in the second half of the year, so that the second half of the year looks, you know, more like mid-single digits. Great. Then, just on the warehouse, any thoughts? Yeah, I mean, I think our warehouse group has done a really good job. I'll talk about the credit side, then we'll talk about the growth side. Been very proactive in working with these clients. We have reduced somewhere between four to six clients over that period of time as we looked through and tried to project credit and trends. I know in the first quarter, we added back one client that wanted to sort of expand and sort of missed the service levels that we provided. I know that we've been looking at flattish to a little bit up for mortgage warehouse. Great. Thanks for taking all my questions. Thank you, Michael. Thank you, Michael. Our next question comes from Brad from Piper Sandler. Brad, your line is open. You may proceed. Hey, good morning. Good morning, Brad. Thanks for taking my questions. Wally, just to follow up on the margin question one more time. Where do you ultimately expect, you know, deposit betas, to finish, for Origin once the Fed stops or shortly thereafter? That's a hard question to answer, Brad. I would tell you that the deposit beta is coming in higher than we had anticipated, and we do expect that it will increase for the next quarter or two. I'd like to hope that we don't go over 50%. I mean, we don't know what it is. We're not modeling that we go over 50%, but we model that we're going up from 36%. Great. No, that's helpful. just I know there's a lot of talk on the, on liquidity and the margin, but I think I heard you correctly that it would only cost you, I think, $200,000 in interest expense, which is, I think, less than half a penny a share. I just wanna make sure, A, I heard that correctly, and B, it just, you know, not, you know, obviously you can move the margin around, but it seems inconsequential as it relates to sort of, you know, kind of what you're gonna earn. Is that, is that the right way to think about it? Correct. Let me clarify my prior answer. Just to be clear, we're talking total deposit beta, not just interest-bearing deposit beta. I like to talk about it from a total perspective because the shift in deposit mix. You are 100% correct. Our view was that the NIM impact of taking the liquidity was worth it, especially given that the earnings impact is relatively negligible. That interest, that $200-$300 that I cite in the script, that is net interest expense, meaning net of the cash that we earn on carrying that at the Fed overnight. Yeah. Perfect. Perfect. Then, just final one for me. I think last quarter you talked about, you know, sort of annualizing 4Q expenses and then, sort of mid-single-digit growth over that number. Does that still feel right, in terms of kinda how you guys are thinking about expenses this year? Yes. We still like that guidance. I will tell you that we are kind of renewing our focus on our expense base and we're gonna do our best to beat that. Right now, we still like that guidance. Very good. Thanks for taking my questions. Appreciate it. Before we move on, hey, this is Lance. I might wanna make kinda one comment to follow up on the deposit betas. Just be mindful, as we talked about last year, that we were really focused on expanding our NIM in 2022 when we had the asset sensitivity and the rates were rising. We didn't increase deposit rates until November 6th. When you looked at Q2, Q3 last year, we didn't see deposit cost increases. When you see a big jump in the quarter from a beta perspective, you know, we have to think about that from a cumulative sort of annual perspective, which I think still compares well and will continue to be an advantage for us. Thank you. Our next question comes from Brady from KBW. Your line is open. You may proceed. Hey, thanks. Good morning, guys. Good morning, Brady. The insurance had a pretty nice quarter, you know, a little over $7 million of fees. I know Q1 is seasonally a strong insurance quarter. Any idea on the outlook for insurance for the year? I think if you look at last year, you did about, you know, $23 million of fees. It feels like you'll do better than that this year. Yeah. Several things are going on with insurance at this point. A consolidation from back office, we're finally getting to the point where we have consolidated the systems. We have one more with our most recent acquisition to accomplish. We've actually restructured management, putting some people in place. We're seeing very nice growth on top of the growth because of the hardening of the market. We also, because of contracts with markets, have been moved in a couple of cases from on contingency income from loss ratio to volume-driven contingency. That's been very nice for us, especially during the first quarter. We see a continuance of that. Working with the other markets that we've now consolidated to move from a loss share, I mean, a loss ratio to volume-driven. Those are things on the income side that are all working. I agree with you. I'll give you some thoughts in a minute on that. Also on the back end, we've been able to cut cost and reduce some of the back-end cost of the agency as we continue to drive for some efficiency and some consistency in how we do things. A lot of good things working. Now, we did see an increase in the commission rate because of also increased volumes. All said, very pleased with where we are. I'm kinda thinking anywhere from a single-digit to a mid-upper-digit increase in revenues on the insurance agency this year. All right. That's helpful. Then I know last quarter we talked about Origin trying to stay under the $10 billion in asset threshold this year. You know, with the excess liquidity, you're almost $10.4 billion, but I know that can go away. Do you still think that, you know, the company can stay under $10 billion at the end of this year, basically pushing Durbin one year further out? Yes. We have specific strategies in place and still feel that we have the triggers to pull. Because if you take the liquidity off right now, we're sitting about 10.8%. I mean, 9.8%, excuse me. With that, with the added increase in 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. We think that we can end up the year between, let's say, 10.6% and 10.8%. I mean, excuse me, between 9.6% and 9.8%. Now I'm trying to get us over 10%. We're gonna get it. Anyway, we still feel confident in it. Okay. All right, great. Thanks, guys. Thank you. Thank you, Brady. Once again, ladies and gentlemen, if you'd like to ask a question, please press star one on your telephone keypad. Or if you are joined via web, press the Raise Hand icon on the right side of your Deal Roadshow screen. Our next question comes from Kevin from D.A. Davidson. Your line is open. You may proceed. Hey, guys. Thanks for squeezing me in at the end of the list here. just one question on credit, because I know in prior quarters there's been, you know, more a proactive or aggressive approach on credit to get ahead of it. I just was curious with these particular loans, was it more that they just deteriorated to a point that it was time to migrate them over, or was it, hey, let's be aggressive, we're going into an economic downturn, let's address anything that needs addressing earlier than later? Thanks. Kevin. Thank you. We weren't fitting you in at the end. We wanted to give you ample time. no, this is a very aggressive approach to, you know, bringing our BTH partners in, and it's how we've managed our portfolio the last few years as we've taken a fresh look and a fresh approach to how we see credit in the future. We think it's incredibly important that we are transparent, that we do things that do not surprise. This was, again, the next part of after the external internal loan reviews to be aggressive with credit. We're not, and I will stand on this. In my 39 year history with this institution, we've never had the asset quality we have today. It's not sitting here looking at deteriorating credit. It's us doing what we do every quarter. 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. Okay, great. just one quick follow on. Wally, earlier you mentioned that the mix shift out of non-interest bearing is something that's a headwind for everyone. You said you think it's slowing. Any sense for where that kinda bottoms that DDA contribution, just based on past cycles? Yeah. Thank you for that last part of that question. We're watching the tax receipts, and that's kind of the biggest variable right now to what level of stabilization we see. In, right now in our model, we're thinking kind of mid-20s, as a% of total deposits. Keep in mind, we are also growing, right? We're working double time to fund that growth with deposits. Incremental deposits coming on tend to be more interest-bearing. Yeah. Hey, this is Lance. I might would throw in a point around that. I think sort of hidden inside of the NIB runoff industry-wide, it hides a little bit of the opportunity that our rural markets provide for us. If you look at North Louisiana, Mississippi and East Texas, even through Q1, we saw deposit growth. I think that's very positive because of the granularity. We've talked also a lot in the past about The way that we formulate incentive plans, you know, historically, where a dollar of deposits was equal to a dollar of loans, well, I'll tell you in 2023, deposits is the focus. It's more valuable, and the bankers clearly understand this. You know. Overtaking the NIB runoff, plus $113 million in tax dollars that ran off in Q1 2023, which is seasonal, that happens every year. We were still able to grow deposits. We were able to grow deposits in our rural markets. And then one data point that we looked at was because of the call-in efforts based on the incentive plans and the way that we've structured our company, our new account openings were actually up 46% Q1 2023 versus 2022. That tells you that we're putting on new clients at a rapid pace, you know, both from an NIB perspective, but also for money markets and time deposits. Super proud of the effort and I continue to be very positive and bullish on our rural deposit franchise. Great. Thanks, thanks, Lance. One quick one on the loan growth slowing in the back half of the year. I mean, that's consistent with what we've heard from others. I'm just curious if you can ballpark, like, you know, or stack rank the drivers in terms of, you know, the economy slowing and demand lessening, as opposed to you guys maybe directly pulling back either from credit, you know, just scrutinizing more on credit and/or it becoming less profitable or unclear how profitable to put a loan on the balance sheet given what we've discussed on funding. Thanks. Yeah. Yeah, I think that's the right question. That's where a lot of our conversation is at the moment. If I were stack ranking them, I would actually base it on our ability to grow deposits and the incremental cost of those deposits. We have healthy pipelines. We still have bankers that are dragging over clients from their old organizations, which we feel really good about the credit. For it's us, and we talked about this last quarter, you know, our deposit growth is gonna be the governor on our loan growth. That's why I think that way. Now, at the same time, are we mindful of potential pending recession and the economy and what that can do? 100% we are. From a credit perspective, we are being very conservative. I tell you what, our bankers are doing a good job. I would say when I'm talking about slowing growth, it's more about making sure that we're being appropriate with our pricing and mindful of our deposit franchise. Great. Thank you, Lance. Thank you, Kevin. Our next question is a follow-up from Matt from Stephens. Your line is open. You may proceed. Hey, guys. Just following up on the discussion around capital levels, and the appetite for a buyback. I think there's still an authorization out there from last year. Stock's trading at a pretty big discount now. With growth slowing the back half of the year, I would anticipate capital building. Would love to get your thoughts on becoming more active on a buyback this year. Thanks. Yeah. Matt, thank you. As I've always said, it's a tool in our tool chest. We have $50 million available at this point. Certainly, I do think that as we continue to see a pullback in our stock and the confidence we have in it, from our executive team to our boardroom, that is an option for us, a very strong option. At this point, I do wanna get through this earning season. I do wanna see what's gonna happen to a potential bank failure, and I do wanna see what is gonna happen around probably in the first part of the second quarter to give us a little bit more confidence. Ultimately, and this is the way I think, and I'm sorry, my net worth is in this institution. I think about 1,000 families that I support. I think about a number of different things. When you do that, you make sure that you are the most conservative in the, in the use of capital in tough times. We have worked hard to put ourselves in a very good position with capital, a strength of ours at this point. We're certainly gonna use that in a very conscientious way to make sure that we do the right thing. Ultimately, I have tremendous confidence in this stock and this company, and it is underpriced, and I do think that's an option for us. Okay. Appreciate the commentary, Drake. Then also just one more, just more of a housekeeping question for Wally. That tax rate's been a little bit volatile recently. Any color on the effective tax rate we should be looking at this year? Yeah. You know, the tax rate's gonna be a function of the earnings level that we are making. We're gonna stick with that kind of 19%-20% range for now. I think that gets you pretty close. Okay. Got it. Thanks, guys. Thank you. Thank you, Matt. Once again, ladies and gentlemen, to ask a question, please press star one on your telephone keypad to enter the queue, or the Raise Hand icon on the right side of your Deal Roadshow screen. It appears there are currently no further questions. Handing it back to Drake with Origin for any finalizing remarks. Thank you, and I appreciate everyone attending today. I would wrap up today with two primary thoughts, and it's around really the current condition of the industry, but more so Origin Bank. When you think about quality of an organization, when you think about deposit franchise and the fact that in a period of time when there's outflows of deposits in the industry, we grew deposits. We enhanced our number of customers. From a loan standpoint and credit quality, best credit quality this institution's 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. As I put all those things together, high quality organization, unbelievably good footprint, excellent partners now in East Texas that are gonna continue to help this organization with what we think are lift out teams that are gonna continue to show growth not only on the loan side, but deposit side. Our incentive plans continue to incent in a big way to grow deposits. That's our primary focus. In the end, it, our capital position continues to be strong even with AOCI in the picture. Very bullish on this organization. Thank you for being a partner. Thank you for being on the call, and we look forward to seeing each of you soon. This concludes today's Evercall. Thank you, and have a great day.